NU Online News Service, Dec. 10, 2003, 11:12 a.m. EST – Yields on money market accounts and bank certificates of deposit probably will stay low for awhile despite the recent improvement in the U.S. economy, according to analysts at Bankrate Inc., North Palm Beach, Fla. [@@]
Money market accounts and bank CDs compete with fixed annuities, fixed accounts in variable annuities and certain kinds of life insurance policies for the assets of cautious investors.
The Federal Open Market Committee admits that the economy is improving, but it says interest rates will stay low “for a considerable period,” Bankrate says.
Bankrate’s weekly national rate survey found the following average deposit yields:
- Money market account yield: 0.5%, unchanged from last week.
- 6-month CD yield: 0.93%, unchanged.
- 1-year CD yield: 1.13%, down from 1.14%.
- 5-year CD yield: 3.09%, unchanged.