Lowering of discount rate affect certificate of deposit rates? - certificate rates
Since federel Reserve reduced the discount rate of 5% on CD today, I should expect from my local bank that soon fall? and if so, when and how?
Wednesday, January 6, 2010
Certificate Rates Lowering Of Discount Rate Affect Certificate Of Deposit Rates?
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2 comments:
Banks generally are followed by federal funds rate instead of the discount rate in setting lending rates and borrowings. The decrease in the discount window can play a role, and the possibility that prices could go down in general, but I doubt it.
If you already have the CD, do not worry if it is marked on the market and not suffer a loss. If not, you can see the prices of CDs to 1 / 2%, but only if it is located, more money and interest to be prepared. If the loan application is not present, will not change the CD set.
Yes
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