Bank certificate of deposit rates showed little movement across most maturities for the week ending April 23, 2010.   The changes that took place were along the one year term bank CDs with the six month, two year and five year terms remaining unchanged.  The limited rate change that did take place was in the wrong direction for CD investors. 

A survey of national CD rates is performed weekly by SelectCDrates.com.  The top ten best national CD rates are tabulated and posted to the website at the start of each week.

The average yield on the top ten best one year CDs moved lower by three basis points or 3/100 of a percent.  The average interest rate closed the week 1.56% from 1.59% in the previous week.  The highest one year CD rate on April 23 came from Tennessee Commerce Bank with a rate of 1.70%, unchanged from the week earlier.

The six month term bank CDs were unchanged week over week.  The average rate for the top ten best six month CD rates held at 1.24%.  The highest six month CD rate available nationally was also unmoved with an interest rate of 1.28%.  The top six month CD rate can be found at Aurora Bank.

The average of the top ten best two year CD rates available nationally was also untouched on the week.  The average two year CD interest rate closed the week at 2.03%.  The highest two year CD rate can be found at Tennessee Commerce Bank with an interest rate of 2.15%, unchanged from the prior week.

Five year CD rates maintained the trend and held firm week over week.  The average yield on the top ten best five year bank CDs remained at 3.13%.  The top CD interest rate in this term did show so movement, in the wrong direction.  The highest five year CD rate, unfortunately, fell by four basis points to 3.26%.  The top rate continues to be the product of EverBank, as it was in the previous week.

This week, CD interest rates displayed the least amount activity of any week this year.  Whether or not bank rates have hit bottom is hard to forecast.  A general rise in interest rates has been predicted almost all year by the financial soothsayers.  The easiest indicator to read to discern the future course of CD rate movements is Treasury yields.  So far this year, each time Treasury rates have moved ahead they have fallen back by almost as much as the gain. 

On average, Treasury rates are modestly higher now than they were at the close of 2009, but that difference is only modest.  Healthy banks continue to sit on a pile of reserves and domestic loan demand is growing at a slow pace.  These factors tied in with the Feds statement on modest inflation expectations and low interest rates lays the ground work for continued low bank CD rates.

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