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Does Anyone Think Savings/CD Rates Will Rise In The Next Two Years?

Sunday, October 20, 2013 - 8:10 PM
I realize no one can predict the future, but does anyone think interest rates for savings or CDs will rise within the next two years?
5
mustsavemoremustsavemore49 posts since
Jun 26, 2013
Rep Points: 152
1. Sunday, October 20, 2013 - 10:04 PM
Sure wish I had a crystal ball to look at to answer your question.  Five year cd rates are slowly climbing and there are a number at 2% now. Some four  years starting to crack the 2% barrier as well.  Problem is it only takes a small hiccup to kick them back down.

Maybe an easier question for you to ask would be do you think the rates will be lower in two years? My feeling is that we have seen the bottom. I mean how much lower can they go?

Not looking at any graphs or tables. Its just my gut instinct that rates will be higher in two years than they are today.

 

 

 
9
FARFAR105 posts since
Feb 26, 2013
Rep Points: 379
2. Monday, October 21, 2013 - 8:41 AM
I don't think it takes a crystal ball but just knowing how badly run our government has been and will probably be until we get a new President in and new people in the Senate and House.  Our government is so disfunctional and the idiots are actually threatening the Shutdown could happen again.  We're pouring tax dollars to help other countries while we rant about Medicare and social security going broke.  Does this sound like a situation where they can afford to raise interest rates?  Even if Yellen wanted to, she would have to think about the consequences to our economy with China holding so much of our debt and I don't think she could do it.  So be thankful for 2% and hope they don't take that away from us!
5
paoli2paoli21,364 posts since
Aug 10, 2011
Rep Points: 5,981
3. Monday, October 21, 2013 - 2:12 PM
I just asked this same question recently. Japan has had very low rates for many years so it is a good idea to read up on their financial situation.  I think it is best to think in terms of rates not going up for 6 plus years to just keep a good frame of mind regarding expectations.  Could rates go lower?  It is possible and we might be lucky with what we have now.  Thinking negatively can help in that it can get you to focus on other things.  If the money isn't there, it just insn't there and "where is it written" that ir will ever be there?  No guarantees!  We have all been rather lucky to live in the U.S. where most of us have had it good in many, many ways!

 
4
SpringSpring6 posts since
Sep 10, 2013
Rep Points: 12
4. Wednesday, October 23, 2013 - 12:07 PM
Sub 4% 30 yr mortgages, sub 2% auto loans, and all of the other low rate long-term money these past 5 years or so are going to take a very long time to clear out of the financial system. Just my opinion but I too would not look for much improvement for at least 5 years and probably much longer.
4
OAGOAG8 posts since
Jun 27, 2010
Rep Points: 62
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