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When the Fed makes a move, or even if it leaves rates unchanged, it affects your wallet. The latest Fed decision to leave rates alone means that the already dismal returns on certificates of deposit won't get any better any time soon.
Currently, the average yields on long-term CDs, one-to-five-year maturities, range from 1.28 percent to 2.90 percent.
On the shorter end of the landscape, the average yield on a three-month CD is 1.03 percent and 1.11 percent on a six month.
Money market accounts are paying an average APY of 0.69 percent.
The downward trend in deposit interest rates shows no sign of stopping.
This is not a good time to invest in CDs; the average rates aren't keeping pace with inflation. It will take a Fed rate hike to see an up tick in CD yields.
If you must invest in CDs because you have a laddered CD portfolio, or if you just want to protect principal, stick with three- or six-month terms so you won't be stuck with a low return when rates start to climb.
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