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. (Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO ) 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 find the highest- yielding CD and money market accounts available to consumers nationwide. * Bankrate.com also conducts a weekly national CD survey, which compiles the rates from the largest banks and thrifts in each of the 10 largest U.S. markets to arrive at a national average. To see data from Bankrate's 100 Highest Yields survey, go to http://www.bankrate.com and click on "CD/Savings." About Bankrate, Inc. Bankrate, Inc. (Nasdaq: RATE) owns and operates Bankrate.com, the Internet's leading consumer banking marketplace. Bankrate.com averages 4.1 million unique visitors per month, according to comScore Media Metrix, which ranks Bankrate.com first in unique visitors in the "Financial Information and Advice" category. Bankrate.com reviews more than 4,800 financial institutions in more than 407 markets in 50 states. Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes and small business finance. It is the leading aggregator of more than 310 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO), America Online, The Wall Street Journal (NYSE: DJ) and The New York Times (NYSE: NYT). Bankrate.com's information is also distributed through more than 100 national and state publications. Note to Editors: Interviews: The reporters, financial experts and management team are available for print, Web, radio and TV interviews -- live and taped. Analysis, fact checking: Our personal finance experts can offer insights, quotes, background, research and rate data. Radio: The Bankrate Personal Finance Minute for radio is available for broadcast. Multiple talkers available for shows -- live or taped. TV: Our experts are experienced with live and taped segments. We have talkers available via satellite feed.
Print/Web: Award-winning reporters and editors creating thousands of evergreen and fresh articles for your paper or site. Editor Alert: Receive breaking news from Bankrate via your e-mail: http://www.bankrate.com/editorsalert Learn more about Bankrate management: http://www.bankrate.com/coinfo/staff.asp Use Bankrate.com's Press Page: http://www.bankrate.com/broadcast For more information contact: Paula Sirois AVP - PR for Bankrate, Inc. http://www.bankrate.com/broadcast psirois@bankrate.com 561-630-1499 SOURCE Bankrate, Inc, -009/15/2004 /CONTACT: Paula Sirois, AVP - PR for Bankrate, Inc., +1-561-630-1499, or psirois@bankrate.com/ /Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO AP Archive: http://photoarchive.ap.org PRN Photo Desk, photodesk@prnewswire.com/ /Web site: http://www.bankrate.com http://www.bankrate.com/broadcast http://www.bankrate.com/editorsalert http://www.bankrate.com/coinfo/staff.asp / (RATE) CO: Bankrate, Inc. ST: New York IN: FIN SU: SVY DS-KW -- FLW008 -9754 09/15/2004 08:02 EDT http://www.prnewswire.com