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Deciding Between Short-Term And Long-Term CDs

Monday, April 16, 2012 - 6:59 AM
Long-term CDs continue to become less appealing as their rates fall more than short-term CDs. Best Cash Cow has a good review of this:
In 2010, the spread was as high as 1.55 percentage points. Or to put it another way, in 2010, 5-year CDs paid, on average 1.55 percentage points more than than 1-year CDs while today, they only pay 0.91 percentage points more.

Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,053
1. Monday, April 16, 2012 - 8:55 AM
The end result will be a flat yield curve.  After all, isn't that what Ben Bernanke wants?
ShorebreakShorebreak2,607 posts since
Apr 6, 2010
Rep Points: 14,115