Make The Banks Work For Their Money
January 9th, 2009, Posted in money, personal financeNo Comments
Banks really, really, really want your money. And that’s good news for savers in an otherwise dismal interest-rate environment.
Overall, average yields for certificates of deposit and savings accounts haven’t dropped nearly as much as other interest rates, particularly the federal funds rate, which the Federal Reserve slashed from 2% in October to 0.25% in December.
By contrast, the average rate on a one-year certificate dropped a little more than half a percentage point, to 1.92%, in the same period, according to Bankrate.com. Savers who shop around a bit can find several banks offering rates over 3% on both one-year CDs and on high-yield savings accounts. (more…)
