Federal Reserve Paying 0.25% APY on Short-term CDs

Federal Reserve, is offering 0% to 0.25 % APY on short term CDs. The bank has promised to maintain its short-term interest rates until mid-2015.

The Federal Open Markets Committee has also recognized that a developed economy will not necessarily inspire the bank to increase its rates. The bank has maintained its interest rate at 0% to 0.25% from December 2008.