The 60-month CD held its interest rate better than any other deposit product at banks, according to research firm Market Rates Insight.
The CD declined from 2.43% in the beginning of 2010 to 1.94% by year end, which was a decline of 49 basis points or 20% of its yield value, MRI data showed. The national average interest rates for all deposits lost 51 basis points during 2010 or 38% of its yield value.
At the other end of the spectrum, checking account interest rates were the worst in 2010, according to MRI. They dropped from 1.59% in the beginning of the year to 0.51% by year end, a decline of 108 basis points or 68% of its yield value.
"There are some similarities between the deposit market and the equity market," said Dan Geller, executive vice president at MRI. "Those who kept their money for the longer term had the greatest return on their money despite record low interest rates on deposits."
While there was a decline in rates across all deposit products, there was a disparity among them. MRI found that money market accounts' average interest had the least decline among all liquid deposit products, dropping from 0.53% in the beginning of the year to 0.41% by year end, which was a decline of 12 bps or 23% of its yield value.
Among the different CD terms, the 12-month CD had the greatest decline, from an average of 1.17% in the beginning of the year to 0.60% by year end, which was a decline of 56 bps or 48% of its yield value.