Will CD Rates Go Up In 2010?

As we near the end of 2009, many people are wondering what the outlook for 2010 will be. At one point CD rates got as high as almost 7%, but now in 2009 we haven’t seen anything good for a while. This past week cd rates were at an all time low. Will CD rates go down even lower in 2010? Probably not, as they can’t go much lower now.

A lot of what will depend on whether CD rates rise in 2010 will have to do with the economy. If the Fed keeps their funds rate as low as they have for next year which as of right now stands between 0 and 1/4 percent, then we aren’t going to see much action for Bank CD’s. On the other hand if the economy starts turning around, you can bet that the Feds will probably see a need to increase rates with inflation which will in turn cause banks to do the same.

For those that are savvy investors this can be a very good thing. But you can also bet that mortgage rates will probably go up to so that banks can even the score. If you have invested money in a long term CD that is yielding higher than 2 1/2 to 3% you are doing alright. There are still a few banks that show a little juice once in a while with an unexpected special rate for a short term CD, but for the most part, short term cd rates are pretty dead.