History of the Real Return of a CD Year CD Rate (%) Less Taxes Inflation (%) Real Return* 1970 7.7 50% 5.5 (1.68%) 1971 5.2 50% 3.4 (.80%) 1972 5.0 50% 3.4 (.89%) 1973 8.3 50% 8.8 (4.65%) 1974 10.0 62% 12.2 (8.41%) 1975 6.9 62% 7.0 (4.38%) 1976 5.6 62% 4.8 (2.66%) 1977 5.9 60% 6.8 (4.43%) 1978 8.6 60% 9.0 (5.56%) 1979 11.4 59% 13.3 (8.61%) 1980 13.0 59% 12.4 (7.07%) 1981 15.8 59% 8.9 (2.43%) 1982 12.6 50% 3.9 2.39% 1983 9.3 48% 3.8 1.02% 1984 10.7 45% 4.0 1.87% 1985 8.3 45% 3.8 .74% 1986 6.5 45% 1.1 2.48% 1987 7.0 38% 4.4 (.05%) 1988 7.9 33% 4.4 .86% 1989 9.1 33% 4.6 1.48% 1990 8.2 31% 6.1 (.46%) 1991 5.5 31% 3.1 .66% 1992 4.0 31% 3.8 (1.04%) 1993 3.3 31% 3.3 (1.04%) 1994 3.4 31% 2.3 .05% 1995 4.0 31% 2.8 (.04%) 1996 4.0 31% 3.0 (.24%)