Coverdell ESA Certificates

[Sensei]

I put aside $2000 a year into an ESA (Education Savings Account) for each of my kids. I can use the money to buy certificates (IRAs) up to 7 years. When I started this last year, the 7 year certificates had an interest rate of 3.5%. They've since gone down to 2.75%, and I've been hesitant to tie up my money for so long at such a low rate. Does anyone know what determines the interest yields on these types of certificates, and if we can expect to see them rise any time soon?

 

[Sensei]

My credit union always adjusts their rates on the first of the month. For some reason, last week, they dropped the rates on the 7 year certificate from 2.40% to 2.00%. Was it the FED's announcement of QE3? Not sure, but I know one thing - I won't be tying up any more of my money at 2% for 7 years. I can get that with the G fund.