short term CD rates heading up??

[charliebrown]

Since Zirp, I have been rolling 3 month CDs in my brokerage account instead of holding a lot of money market funds. I figure they are safer because I theoretically have FDIC protection, and
I can pick my counterparty, by looking up credit scores of the issuing bank on the web.

The Nadir for CDs seemed to be around August with most in .10 - .15 rate. Since then, rates have been ticking up almost every month. I'm now seeing rates as high as .35. From a good bank with a low troubled asset ratio, rates are around .25 - .30.

Just curious if this means anything. It is over the fed funds rate. Are banks figuring out what to do with some money instead of just keeping it with the fed? Are there cash issues in 2012?

[don]

Re: short term CD rates heading up??

I'm now seeing rates as high as .35

proving once again we can adjust to practically anything . . .

[FRED]

Re: short term CD rates heading up??

proving once again we can adjust to practically anything . . .

You may recall our Great Bank Rates forum from 2007. CDs paying 7.79%?

[thriftyandboringinohio]

Re: short term CD rates heading up??

When the old original iTulip warned of a dot com stock bubble , I rolled the family 401Ks into long CDs and took over 7% for years and years.
Felt stupid the first few months, and then looked brilliant for years after.

[don]

Re: short term CD rates heading up??

When the old original iTulip warned of a dot com stock bubble , I rolled the family 401Ks into long CDs and took over 7% for years and years.
Felt stupid the first few months, and then looked brilliant for years after.

I agreed with that advice and decided it was time to sell the too-big-for-us house (the kids had left) before the coming recession. Got an excellent price and thought we'd buy a replacement soon. The unexpected housing bubble kept us waiting while our savings, unlike yours, was all short-term ever-falling interest returns. We held on as the Federal Express sped to ZIRP . . .