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Deposit Rates Staying Low for the Rest of 2011

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The Federal Deposit Insurance Corporation released their Weekly National Rates and Rate Caps report that showed deposit rates declined yet again. This isn't a surprise since rates have been declining for several years now. You can expect rates to continue their slow decline for the next several months and possibility until the end of 2011 because of several different reasons.

Late last week the Fed said the economy hit a soft spot and should get better latter this year. That didn't stop the Fed from lowering their forecast for economic growth this year and next. The Fed also said they were keeping the Fed funds rate in a targeted range of zero percent to 1/4 percent. Finally the Fed also said they were going to reinvest process of maturing mortgage-backed securities (MBS) into Treasuries.

A slow expanding economy, low inflation and the Fed will all keep CD rates low this year. You might see some banks raise CD rates to the high end of rates that are available but don't expect average CD rates to go higher this year.

You can find the best national CD rates and local CD rates by using our rate tables at

Here is the list of deposit rates in the FDIC's report:

  • Savings Rates 0.14%

  • Money Market Rates 0.20%

  • Interest Checking Rates 0.09%

  • 1 Year CD Rates 0.45%

  • 1 Year Jumbo CD Rates 0.47%

Author: Brian McKay
June 27th, 2011