If you've been wounded by the stock market carnage, nobody can blame you for eyeing the safe harbor offered by certificates of deposit. Investors rolling over maturing CDs or parking money in cash for diversification purposes are seeing yields well below those of a year ago, when yields were on their way to the highest point in five years. These falling yields may be particularly discomforting to investors seeking to diversify away from the carnage of the stock market. The past two weeks have been particularly volatile in the CD world. The silver lining is that a slow-growing economy typically has a more modest rate of inflation.
Time is certainly of the essence as the yields continue to fall.
With the Federal Reserve actively cutting interest rates to spur economic growth, there is no foreseeable end to declining yields. Each is FDIC-insured and offers the yields nationwide. Investors can maximize the yield on cash investments by seeking out the highest-yielding products nationwide, even in a declining interest rate environment. U.S. Highway 1, North Palm Beach, Fl. Bankrate Inc. all rights reserved.