CD rates lower than savings rate?

Posted By Paul

If you have been following Frugalize you've noticed that I watch CD rates and that I've set up some CD ladders as a savings vehicle (to read earlier CD ladder posts click here).

I was intrigued by the fact that at ING currently a 12-36 month CD earns an APY of 1.5%. Yes that's a pretty low number, but what really intrigues me is the fact that the current APY for a normal savings account is 1.65%.

I don't have a ton of experience but I've never seen CD rates go LOWER than a normal savings account.

My thought is that if you are expecting your savings account to drop even further, then locking in a CD at a lower rate might actually seem appealing.

I found an article on Get Rich Slowly that discusses this:

CD (Certificate of Deposit) Rates: Current CD Rates at Online Banks

One thing is for sure, these are very strange times.