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Unusual Rate Structure

Friday, July 23, 2010 - 10:06 AMInstitution for Savings
Can anybody explain to me why a bank would offer a higher APY on 36 and 48 month CDs than on a 60 month CD?? Since bank has your money longer; doen't that mean they make more off of it; and conversely can afford yo pay YOU more??
StrangerThingsStrangerThings1 posts since
Jul 23, 2010
Rep Points: 5
1. Friday, July 23, 2010 - 1:03 PM
They may anticipate further rate deterioration in 3-4 years and don't want to commit any higher than forecast.  Think deflation.
CraigPDCraigPD94 posts since
Jun 12, 2010
Rep Points: 336