When do you think will CDs rates will go up?

[Ciao Mickey]

I really feel sorry for all of the seniors who depend on the extra income from their CDs. (My mother being one of them.)

I think it's obscene that banks are paying 1% on a CD.

Do you think CDs rates will ever go back up again any time soon?

Where are you keeping your extra cash and what does it pay?

 

[Marionnette]

I really feel sorry for all of the seniors who depend on the extra income from their CDs. (My mother being one of them.)

I think it's obscene that banks are paying 1% on a CD.

Do you think CDs rates will ever go back up again any time soon?

Where are you keeping your extra cash and what does it pay?

Banks are in business to make money. They can't pay out more in interest on CDs and savings than they can charge in interest on loans. The rate on CDs will go up when the loan interest rates go up.

When will that happen? Who knows? Anyone who knows would be rich.

Very little of my money is in CDs because the interest rate is even lower than what I can get on my savings account. The majority is in mutual funds, ETFs and bond funds. But those investments carry more risk than a senior citizen who is dependent on the income from her investments should shoulder.

It's unfortunate but when the economy stinks, interest rates on savings also stinks.

 

[cvjw]

You do realize that banks have to make money for their shareholders and employees, and if they are only able to loan money for mortgages at 3 or 4%, then they can only pay CD holders 1% or so. Back in the 70's when interest rates on CDs were so high, mortgage rates were much higher - it all works together. I also wish that interest rates for CD's were higher, but it would also mean much higher interest rates on mortgage and car loans, which in this economy would be very detrimental to alot of people.

We have our money in the stock market.

 

[ICF]

As others have mentioned, with Mortgage Loans or Auto loans having such low interest rates, the flip side is those conservative investments like CDs/Savings Accounts aren't going to pay anything to speak of in terms of an interest rate.

For CD rates to go back to 3 - 4%, you'll need to see mortage rates back in the 7-8% range again....no thanks.

Almost all of our money is in the stock market via our IRAs / 401Ks

 

[Jeff_G]

Also what is keeping this down, the Fed Fund rate is 0.25%. So this is the rate at which banks can barrow money from the federal reserve at. Why pay you and me high CD rates when they can get money for almost nothing from the federal reserve.

Every quarter the federal reserve gets together and votes on among other things what to do with this rate. Their reports are saying they are going to keep this rate low for the next two to three years.

So we might see CD rates begin to rise in three or more years...

 

[LuLuO]

My mom has opted to not renew any of her CDs in the past year. It just isn't worth her time to go up to the bank and renew everything. Thankfully she has other investments that are paying much better and never really counted on her CDs providing necessary income. I know a lot of people do rely on that and I feel for them, but I sure am glad to have my mortgage at 3.85%.

 

[kydisneyfans]

As others have mentioned, with Mortgage Loans or Auto loans having such low interest rates, the flip side is those conservative investments like CDs/Savings Accounts aren't going to pay anything to speak of in terms of an interest rate.

For CD rates to go back to 3 - 4%, you'll need to see mortage rates back in the 7-8% range again....no thanks.

Almost all of our money is in the stock market via our IRAs / 401Ks

Same boat here.
Getting ready to pull all 401K money out and place in very conservative funds as I think a correction is about to occur. The stock market tanks every time gas hits $4 and everyone stops spending.

For a senior, the market is too risky.

 

[tajz90]

I'm ready for them to shoot back up! Frustrating and sad for the savers.

 

[dvcgirl]

Unfortunately for savers, rates aren't going up anytime soon. The Fed said that they plan to keep rates "exceptionally low" through late 2014.

I think it will be longer than that. I don't see this economy heating up substantially anytime soon.

 

[Zerosinthecloset]

We have a bunch of money in our SP fund...Sealy Posturpedic.

 

[Sweettears]

Banker here. The best information we have is that rates will begin to go up in 2014. My personal feeling is that once they do begin to rise they will do so rather quickly.

 

[tajz90]

We have a bunch of money in our SP fund...Sealy Posturpedic.

Hilarious! hahahaha

 

[JaymeC]

Like what Sweetears said, at minimum 2014 from what I'm hearing at work (at a Credit Union)

Also please keep it in perspective. Our credit union rates are higher than most, and we're losing money on every single CD we issue right now because we can not recoup those investments anywhere. Like others have said, it all works together.

 

[luvmarypoppins]

We do tax free municipal bonds. We tell our broker to get things as close to 5% as possible, and make sure they are rated well.

We are not stock market people.

Is she interested in any annuties, although they carry risk too etc.

 

[ceecee]

We have a bunch of money in our SP fund...Sealy Posturpedic.

Rates won't go up for a while. Like the previous people said mortgage/loans would be higher and that would stop people from buying and the economy would suffer.