The average of the best two year certificate of deposit rates available nationally moved lower for the week.  The average yield of the top ten best bank rates was down by two basis points or 2/100 of a percent bringing the interest rate to 2.31% from the prior week’s average of 2.33%.

The highest two year CD rate remained unchanged at 2.40%.  Atlantic Coast Bank dropped their six month CD rate promotion but kept the two year in place at 2.40% to lead this CD term.  American Express Bank and Discover bank moved into the second spot with two year CDs that have interest rates of 2.35%.  The previous second spot was held by E-Loan which reduced their two year CD rate from 2.37% to 2.20% pushing their two year CD off the top ten list altogether.

State Bank of India holds the position for the third highest CD rate available.  State Bank of India in New York offers a two year CD rate at 2.32%.  Capital One Bank and La Jolla Bank both sit with the fourth highest two year CD rates in the nation.  These two banks continue from the previous week to promote two year CDs that yield 2.30%.

Finishing the list of the top ten best two year CD rates are two banks at 2.28% and two banks at 2.26%.  NewDominion Bank and Aurora Bank both offer two year CD rates at 2.28% while Flagstar Bank and AIG Bank market two year CD rate at 2.26%.

Though the highest two year CD rate remained steady and the drop in the average was modest, the change within the list was fairly significant for the week.  Four banks on the top ten list from the prior week reduced their CD rates, two banks reduced the rates enough to fall off the list altogether.  There were no rate increases over the same period of time. 

When bank CD interest rate changes increase with this level of activity it is prudent to view both the national and local CD rate markets to capitalize on the banks offering the best promotions while they last.

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