First, some good news. Job unemployment reports for July are already out, showing that employers last month only cut down a total of 247,000 jobs. That’s still a lot of jobs of course, but definitely lower than the expected 320,000 job losses that analysts have earlier predicted. This brings down the unemployment rate to 9.4% (the rate for June was 9.5%), again an improvement from the forecasted 9.6%.

Despite this, banks remained consistent on keeping their CD rates on the low side still finding no reason or indication from the Fed as yet, to raise yields on deposit products, particularly CDs.

In fact, banks this week cut their rates by as high as 0.70% – 0.80%, pulling CD rate averages relatively much lower than the previous week’s rates. The table below shows a detailed comparison:

CD-rates-averages-august-7-2009The current rate average for 24-month CDs, is hovering at its lowest point seen only a month ago.

Significant Rate Drops

BankTermLast APYNew APYChange
Rainier Pacific Bank24-month CD1.80%1.00%-0.80%
Virginia Commerce Bank12-month no penalty CD1.75%1.00%-0.75%
Emigrant Direct60-month CD3.00%2.50%-0.50%
Dollar Savings Direct60-month CD3.00%2.50%-0.50%
National Penn13-month CD1.65%1.30%-0.35%

While in the next few days the stock market is poised to do well in response to the better-than-expected unemployment figures, it seems that CD rates have yet to bottom, or at the very least, are slated to remain in these levels for a long while.

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