After slight increases in August and September long term CD rates (2,3 and 5 year certificates) have reversed course and have headed back down for the month of October.

Hopes have been high that the raises in August and September may have marked the end to the spiraling CD rates, but as it stands now long term rates are just barely above the record low we saw in the month of July.

The shorter term certificate of deposits have also reversed course albeit not as bad as the long term CD’s.

What does this mean for you?

It means not much has changed.  The same rules that applied for borrowing back in July and August and still the same as we head into November.  The decline in CD rates may not yet have reached its bottom, although hopes are still high that this is merely a short dip and soon the CD rates will rebound and continue to rise.

Remember the general rule of thumb: Go short when CD rates are low and you think they’re going to go up, and go long when interest rates are high and you think they’re going to go down.

CD Rates are obviously low and we are hoping they will increase.  So now may not be the best time to go long.

Here you can check out the best CD rates from banks across the country. Interest Checking Accounts may be a great alternative while CD rates are still so low.  Interest checking will allow you to have continual access to your money, and still be earning comparable interest to CD accounts.

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