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How Far Have Savings Interest Rates Fallen Since 2011?

It's official: according to findings in a new study by, based on its database of rates offered from more than 4,000 banks and credit unions, gone are the days when depositors could earn savings account rates of 1-2% or more. Even certificate of deposit rates, traditionally the higher-yield alternative to savings accounts, aren't faring well.

For depositors, it can feel like savings rates in the U.S. have always been extremely low -- but even just two years ago, interest rates were much more competitive for savers. To analyze just how savings and CD rates have changed in the past two years, GoBankingRates compared current average interest rates on savings accounts and 6-month, 1-year and 2-year CDs to average rates from 2011.

According to GoBankingRates analysis, savings account rates have remained most steady, falling from an average .36% APY in 2011 to a current average of .21% APY. Two-year CDs took the biggest hit, dropping from 1.20% APY to .67% APY.

Casey Bond, managing editor of GoBankingRates, explains that these trends make sense given the way banks set interest rates, especially for long-term certificates of deposit rates that are based on future market predictions from The Federal Reserve.

Ms. Bond explains, "Banks must be more careful in setting CD rates, as overestimating where interest rates will be years from now would result in losing money."

She adds that as the economy shows few signs of recovery, "banks must become increasingly conservative in the interest rates they offer until there is definite sign that rates will begin to pick up again."

To see the full study, click here.