Interest rates on deposits in Nevada, for the most part, continued their double-digit decline over the past two years, as the Federal Reserve has kept the benchmark rate close to zero, according to a new GoBankingRates.com study.
For example, the average annual percentage yield on a one-year CD at a bank or credit union in Nevada was 0.34 percent in January, compared with an APY of 0.61 percent two years earlier.
The study surveys average rates for numerous financial products such as savings accounts, six-month certificates, one-year CDs and two-year CDs.
The smallest decrease was for six-month CD rates with 0.11 percent, a 32 percent difference in values, while the average two-year CD rates fell most significantly by 0.39 percent, representing a 47 percent change from 2011 figures.
Overall, the average percentage of change between 2013 and 2011 was 45 percent.
“CD rates are not based on today’s economic situation, but the future,” said Casey Bond, GoBankingRates.com’s managing editor. “It makes sense, then, that longer-term deposit account rates such as two-year CD rates would experience the largest drop during the aftermath of a recession.”
Nevada’s ranking in each deposit category against the rest of the U.S. is near the bottom. The Silver State ranks 47th when it comes to rates for a six-month CD; one-year CD is 48th; two-year CD is 51st; and 46th for rates offered on a savings account. The study also including deposit rates in Washington, D.C.
Contact reporter Chris Sieroty at email@example.com or 702-477-3893. Follow @sierotyfeatures on Twitter.