Reviewing 2010: Two essential accomplishments for a year of minimal interest rates

The end of the year is always a good time to look back and appreciate what you've accomplished, and remind yourself about what still needs to be done. In light of the low-interest-rate environment that pervaded in 2010, here are some especially timely tasks you should accomplish, unless you've already checked them off on your list this year:

1. Shop for the best CD rates, money market rates, etc. When 2010 began, 1-year CD rates were at 0.91 percent, money market rates were at 0.34 percent, and savings account rates were at 0.20 percent. By Thanksgiving, those rates had fallen to 0.54 percent, 0.24 percent, and 0.17 percent, respectively. So, if you started out the year waiting for bank rates to rise, that didn't work out too well. Now it's time to take matters into your own hands. Average 1-year CD rates, money market rates, and rates on savings accounts have all fallen below the rate of inflation, but if you shop for the best rates on the market, you still have a shot at beating inflation.
2. Refinance your mortgage. If you are thinking "but I already looked into refinancing, just last year," you may be in for a pleasant surprise. Current mortgage rates are substantially lower than they were when 2010 began. Also, if you weren't eligible to refinance last year, things may be different now if you've improved your credit rating or built up equity in your home. It's certainly worth checking -- it could save you money for years to come.

Will 2011 repeat the low interest rate environment of 2010? It's possible, but not likely. After all, interest rates already beat the odds by staying as low as they did for all of the past year.

Whether current mortgage rates and money market rates stay the same, rise, or even fall, you can't control big-picture conditions. What you can control are the actions you take to make the best of those conditions, and if you haven't taken the above steps in 2010, you may be leaving some money on the table.