NEW YORK, July 7 (UPI) -- Bankrate.com of New York said Wednesday yields on certificates of deposit are rising in response to the Federal Reserve's decision to hike rates.
Bankrate.com said: "Investors have endured painfully low yields on certificates of deposit for the past three years. With the Federal Open Market Committee now in the process of increasing interest rates, yields have begun to rebound.
"Short-term CD yields are more responsive to actual rate moves and will continue to rise on the heels of the June 30 rate hike. Lower-than-expected job growth will hold back the progress on longer maturities temporarily, but the likelihood of higher rates will ultimately push yields higher."
According to Bankrate.com's survey of large depository institutions, the average six-month CD yield rose to 1.08 percent, the highest level since May 2003 and up from 1.07 percent a week earlier.
The average one-year CD yield rose to 1.51 percent, the highest since November 2002 and up from 1.48 percent a week ago. The average yield on the 5-year CD remained at 3.6 percent and yields on money market accounts remained at 0.45 percent.
