CD Rate Trends This Week: April 20

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Certificate of deposit rates remain relatively flat this week, for the second straight week in a row.

There was some thought among Wall Street-watchers that the U.S. Securities and Exchange Commission’s fraud charges against Goldman Sachs (Stock Quote: GS) would force investors into the “safe haven” of the bond market.

While the news did send the stock market down, with the Standard & Poor’s 500 Index down 2% last Friday and the VIX volatility index spiking upward by 24%, things settled down on Monday. Yesterday’s session saw a 0.45% rise in the S&P 500, suggesting that either Wall Street doesn’t think the government has a case against Goldman Sachs, or it does, but it won’t mean much as the so-called economic recovery casts a huge shadow over the financial markets.

In fact, one could make the case that the larger issue impacting CD rates was news from the Conference Board that its index of leading economic indicators was up last month by 1.4%. That’s the 12th straight month we’ve seen a rise in the Conference Board Index, indicating a slow recovery, but a recovery nonetheless.

It’s no coincidence that the index’s key ingredient is the U.S. stock market, which has risen 79% during the past 13 months, roughly the same upward period marked by the Conference Board numbers.

But bank deposit sellers aren’t convinced yet, especially as Treasury rates fell back during the past two weeks, and that’s why we’re seeing CD rates remain flat for the month of April. The good news is that, last year at this time, CD rates would have been going down, so there is something to be said to an economic shift where rates are at least treading water, waiting for more economic signs to shoot upward again.

That’s the big picture on the CD landscape this week. For the numbers, let’s go to the BankingMyWay Weekly CD Rate Tracker:

 

 

Description           This Week      Last Week

60-Month CD            2.127%          2.117%

48-Month CD            1.816%          1.809%

24-Month CD            1.239%          1.24%

12-Month CD            0.781%          0.783%

Six-Month CD            0.52%           0.522%

Three-Month CD        0.336%         0.335%

The CD market seems to be caught in the middle of a balancing act. With stocks up and Treasury prices down, CD rates don’t seem to have a long-term launching pad.

To get the best deals no matter what the markets say, check out the BankingMyWay CD Rate Search.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

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