National bank CD rates were a mixed bag for the week ending August 28, 2009.  Overall, CD interest rates had dropped modestly during the week.  The short term rates absorbing most all of the loss in yield, while the longer term rates gained ever so slightly.

The average for the best six month CD rates fell by three basis points or 3/100 of a percent to end the week with an average yield of 1.72%.  The best one year CD rates moved lower by three basis points as well, closing the week with an average interest rate of 2.04%.  The two year CD rates held firm, remaining unchanged at 2.36%.  The longer term, five year CD rates gained one basis point to 3.36%.

Treasury rates were lower for the week as well, albeit the drop in yields was by relatively modest amounts.  The six month Treasury rate was down by one basis point to close at 0.25%, the one year Treasury was unchanged at 0.44% and the ten year Treasury was off by two basis points dropping to a yield of 3.46%.

Even though the drop in rates was mild, the spread between regional and state specific CD interest rates is widening.  Most state averages were unchanged for the week leading to far greater opportunities in state CD rates as opposed to online only bank CD rates as well as the big national bank rates. 

The enclosed national table of the best CD rates by term is a great place to start, but the real value is perusing the CD rate tables by state.  Selectcdrates.com posts only the highest CD rates across the nation as well as the highest CD rates by state.  Comparing the national average CD rate has limited value, as an investor you want to know where the best bank rates are and where your bank CD rates stacks up against the best rates, not the average of over 8,000 banks across the U.S.

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