GOBankingRates 2014 Survey Finds 3% is the Interest Rate That Would Incentivize Savers to Open a Two-Year CD

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Jun 03, 2014, 07:15 ET

LOS ANGELES, June 3, 2014 /PRNewswire/ -- Certificates of deposit were once a reliable source of interest for low-risk savers, but a new GOBankingRates poll has uncovered that Americans expect higher interest rates than are offered by most CD accounts today.

Of the 1,501 survey participants who were asked "What interest rate would you need to put your savings in a certificate of deposit account (CD) for two years?," 51.3 percent expressed they'd require upwards of 3.01% APY. However 23.6% of survey respondents said they would be willing to open a two-year CD with as little as 0.01% to 1.00% APY.

As part of the investigation, GOBankingRates also found the best two-year CD rate today is 2.00% APY, while today's average two-year CD rate is just 0.47% APY.

CLICK HERE to see a list of the best CD rates available today: http://bit.ly/1h0czHe

Other findings of the CD interest rate survey:

Older respondents were more likely to say they wanted more than 3.01% APY to open a two-year CD, while younger respondents were more likely to settle for the lowest available CD rate option of 0.01% to 1.00% APY.
The lowest income bracket polled was most likely to require the lowest CD rate option – between 0.01% and 1.00% APY.
Geography was also significant, as 29.1% of rural respondents were satisfied with lower rates, compared to 22.9% of urban respondents and 22.1% of suburban respondents.

For more details on how income, age and geography affected results, go to: http://bit.ly/1kybp5I.

About GOBankingRates

GOBankingRates (www.gobankingrates.com) is a leading personal finance website that shares interest rate information from over 6,000 banks and credit unions with the consumers that use GOBankingRates every day to learn how to save, grow and manage their money.

Contact:

Connie Lundegard
[email protected]
310.297.9233x112

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SOURCE GOBankingRates