ARDMORE, PA, October 11, 2009 /24-7PressRelease/ -- CD rates have been in a free fall since the start of the recession and according to Bromoney.com, a bank monitoring website, that trend has continued as short term CDs have reached new lows.
Certificate of deposit rates for terms of 3 months to 2 years have fallen once again this week, and if you're going to open a CD most people should stay towards short term CDs. You don't want to lock in these low cd rates for a long period of time.
Most economists believe that the Federal Reserve will cease their push for low interest rates by next summer, so it makes sense not to lock in money beyond that date as rates will rise after the Fed raises them.
Rates on CDs for terms of 3 months to 1 year terms fell to rates that haven't been this low since the 1980s. Long term CDs aren't doing much better than short term cd rates. In fact 5 year CDs are only slightly higher than July's 5 year rates which were the lowest rates since 1984.
This climate for banking products with low interest rates makes it more important than ever to find the highest rates you can find. Site's such as Bromoney.com find the highest national rates on products like certificates of deposit and savings and post them to their site.
A 9 month CD would take you into the summer of next year and according to Bromoney's site there's currently only 1 financial institution that is offering a rate over 2% APY. It's not a great rate, but if you must lock in you might as well take the highest rate you can find.
It's also possible to find better rates from local banks so consumer's should be sure to check local banks before locking in their money. Consumers should also keep in mind that the FDIC insured limit is still $250,000 so it is important to stay under the insured limit for any given financial institution.
For more information on CD rates please visit the Bromoney.com cd rate page at http://www.bromoney.com/cd-rates
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CD Rates New Lows as Monitored at Bromoney
October 11, 2009 at 04:00 AM EDT
