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:
The current rate average for 24-month CDs, is hovering at its lowest point seen only a month ago.
Significant Rate Drops
Bank Term Last APY New APY Change
Rainier Pacific Bank 24-month CD 1.80% 1.00% -0.80%
Virginia Commerce Bank 12-month no penalty CD 1.75% 1.00% -0.75%
Emigrant Direct 60-month CD 3.00% 2.50% -0.50%
Dollar Savings Direct 60-month CD 3.00% 2.50% -0.50%
National Penn 13-month CD 1.65% 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.