Friday, July 23, 2010 - 10:06 AM

Unusual Rate Structure

Institution for Savings (0 stars) - Details

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??

StrangerThings1 posts since
Jul 23, 2010
Rep Points: 5

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This post applies to the following states: MA.

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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.

http://forecasts.org/subscribe/sample/index.htm

CraigPD93 posts since
Jun 12, 2010
Rep Points: 326