CD Rate Falls Below 1% For First Time
NEW YORK (
) -- The average rate for certificates of deposits fell below 1% for the first time since the data became available in the 1950's, according to an analysis by Market Rates Insight (MRI).
The calculation includes CDs ranging from three months to five years, and reached 0.99% in October, according to MRI.
The record is one of many reached in the wake of the crisis, MRI executive vp Dan Geller said in a press release. Others include the lowest Fed Fund rate and the lowest overall deposit rates.
Rates have been pushed ever lower as risk-averse investors have shown a willingness to accept unusually low returns to guard against losses, and the Federal Reserve has kept rates at record lows the interest rates banks like
Wells Fargo
(WFC) - Get Report
Citigroup
(C) - Get Report
and
Bank of America
(BAC) - Get Report
charge each other for loans.
--
Written by Dan Freed in New York
.
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