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Savings and CD Rates Keep Dropping Along with Fed

Savings and CD Rates Keep Dropping Along with Fed

Rate information contained on this page may have changed. Please find latest cd rates.

Author: Ari Socolow on March 12, 2008 - modified on September 26, 2018

Six months ago you could find a savings account or CD above 6%. Just a month ago you could find a rate above 5%. Soon, you'll be lucky to find a rate above 4%.

Rates keep dropping in anticipation of further rate cuts from the Fed to try and prevent the economy from worsening. Yields on savings and CD accounts continue to fall in anticipation of a rate cut by the Fed.

On December 7, 2007 you could still get a 5.30% APY savings account from OneUnited Bank. They now pay 4%. In February, the top 1 Year CD Rate was Everbank's 4.25% APY. The top rate is now IndyMac at 3.70%.

In a recent Forbes article, economists speculate that the rate could go even lower depending on how the economy performs. Either way, it will be some time before we see those 6% APYs again.

Visit the CD Rate Tables

Visit the Savings and Money Market Rate Tables

Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to bank transparency and the climate crisis. Since co-founding BestCashCow in 2005, Ari has been frequently cited in the media as an expert on local and national savings accounts, CD products, mortgage and loan products and credit card rewards products.

Today's Highest Online CD Rates

Bank	Product Term	Interest Rate (APY)
Finworth, a division of InsBank	1-Year	4.55% APY with $50,000 minimum
TotalDirect, a division of City National Bank of Florida	1-Year	4.50% APY with $25,000 minimum
First Internet Bank of Indiana	1-Year	4.42% APY with $1,000 minimum
Merrick Bank	3-Year	4.15% APY with $25,000 minimum
Colorado Federal Savings Bank	3-Year	3.95% APY with $5,000 minimum
M.Y. Safra Bank	3-Year	3.90% APY with $500 minimum
Merrick Bank	5-Year	4.05% APY with $25,000 minimum
Synchrony Bank	5-Year	4.00% APY with no minimum
M.Y. Safra Bank	5-Year	3.90% APY with $500 minimum

See More Online CD Rates →

Comments

drake

March 12, 2008

Do you still recommend against CDs longer than three years?

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Sam Cass

March 12, 2008

I think the time passed to invest in longer term CDs. Six months ago you could have gotten 6% APY and it would have been worth it. But now rates are too low to lock into CDs longer than 1 year in my opinion. With inflation near 4%, a 4% CD is paying an after-inflation return of 0. Better to keep the money in shorter term investments and wait for rates to rise, assuming they do. I'd go for 1 to 2 year CDs. Three years max.

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