Average rates for money market, checking accounts flat but rates for 12-mo. CD move higher. June 16, 2004: 3:54 PM EDT
NEW YORK (CNN/Money) - Interest rates for 12-month CDs moved modestly higher to a 1.45 percent average for the week ended June 15, from 1.42 percent the previous week, but rates for other savings instruments remained flat.
Current Savings Rates
Type
Overall avgs
MMA
2.40%
$10K MMA
2.59%
6 month CD
3.10%
1 yr CD
3.50%
5 yr CD
4.05%
"The bond market has an influence on the longer term CDs [greater than 12 months], while the shorter term CDs, along with checking and money market accounts, are influenced more by the Federal Reserve," said Randy Rosen, manager of deposit research at Informa Research Services.
"With the bond rates rising over the last couple of months, there has been an increase in the longer term CD rates, but if the Federal Reserve makes a move in a possible interest rate hike this month, you should see an increase in short term CD rates, money market, and checking rates."
Rates for 12-month CDs ranged from 0.35 percent on the low end to 2.89 percent for the week, according to Informa. A month earlier, the average rate stood at 1.36 percent.