Bankrate: Greenspan's Comments Keep CD Yields Climbing
NEW YORK, Sept. 15 /PRNewswire-FirstCall/ -- In testimony before the House Budget Committee on Sept. 8, Alan Greenspan
commented that the economic expansion was regaining some traction and that inflation pressures have eased. This was a solid
indication that the Federal Reserve's rate-setting committee intends to raise short-term interest rates by another quarter-point
on Sept. 21. An additional increase by year-end is also expected, and with inflation under control, the Fed can continue to raise
rates at a measured pace. The prospects for additional interest rate increases will keep yields on short- term CDs climbing.
The average one-year CD yield increased to 1.64 percent, according to Bankrate.com's weekly national survey. Yields on
maturities longer than one year continue to tread water, with the average five-year CD yield unchanged for the third
consecutive week at 3.56 percent.
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Deposit averages from Bankrate.com's national CD survey
Money market account: 0.48%, unchanged from last week
6-month CD yield: 1.23%, up from 1.22% last week
1-year CD yield: 1.64%, up from 1.63 % last week
5-year CD yield: 3.56%, unchanged from last week
Of course, investors can do much better than the average by using Bankrate.com's rate tables to shop nationwide for their
FDIC-insured money market accounts and certificates of deposit. This week, Bankrate.com found 10 institutions yielding at
least 2.1 percent on money market accounts. Bankrate.com also found eight institutions paying 2.35 percent APY or higher on
six-month CDs. On one-year CDs, Bankrate.com found 12 institutions paying at least 2.8 percent APY. All yields are available
nationally to customers who do not have an existing relationship with the institution.
Bankrate.com conducts two surveys each week for money market accounts and CDs:
* The 100 Highest Yields survey is conducted weekly to f