Popular Posts

Why the Low Long-Term CD Rates

POSTED ON BY

Bankrate.com now lists 12 banks with 1-year CDs with rates of 4.70% or higher. It only lists 13 banks with 5-year CDs with rates of 5.00% or higher. These days you don't get much of a premium for a term that's 4 years longer.

This WSJ article provides some insights into this interest rate environment. Last week the difference between 2-year and 10-year Treasury notes was only 0.08% which is down from 0.30% in September. Its historical average is 0.75%. This current flattening of the yield curve may be a sign of an economic downturn. The Fed's rate hikes have resulted in higher short-term interest rates. The worries in the bond market have kept the long-term rates low. This flat yield curve may then put additional pressure on the economy due to its effect on bank profits and homeowners' expenses.

The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.