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CD Rates – Average Rates Stable as Economy Slows

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CD rates are stable this week as advance gross domestic product (GDP) numbers came out showing the economy is slowing down. Slower growth will keep interest rates low for the foreseeable future. Advance first quarter GDP increased at a rate of 1.8%, down from the from the fourth quarters real GDP growth rate of 3.1%.

Growth slowed this past quarter because of a sharp increase in imports, a deceleration in personal consumption (consumers bought less), fixed investments and exports.

Another longer term factor that will keep CD rates and interest rates down is the Federal Reserve. The Federal Reserve Open Market Committee met and decided to keep the Fed Funds rate in a targeted range of zero percent to one quarter percent for now. The reason why is the economic recovery is proceeding only at a moderate pace and inflation isn't a concern yet.

Right now the current national average 12 month certificate of deposit rate is 0.479%, down considerably from last week's average 12 month rate of 0.624%.

National Average CD rates as reported by

  • 3 month 0.231%

  • 6 month 0.397%

  • 12 month 0.479%

  • 18 month 0.752%

  • 24 month 0.979%

  • 36 month 1.289%

  • 48 month 1.516%

  • 60 month 1.899%

It's hard to imagine interest rates going any lower than they already are but it is possible. If the economy slows further or contracts we could see rates go even lower.
Author: Robert Till
May 1st, 2011