The best certificate of deposit rates in California were down modestly for the week ending May 22, 2009.  The six month CD rates and five year CD rates continue to match or beat the best national bank CD rates; however the mid term CDs, one year CD rates and two year CD rates, are now lagging the best national rates.  The highest six month CD rate stands at 2.32%, a product of American Plus Bank.  The highest bank rate on the accompanying table is a nine month CD that is significantly higher than the competition and was added to the list for consideration.  This nine month CD is offered by Plaza Bank and yields 2.65%. 

In the one year CD rate category, Plaza Bank is the leader with a one year CD that has an interest rate of 2.75%.  This rate is just five basis points or 5/100 of a percent below the best national rate of 2.80% set by Ally Bank which is the old GMAC Bank with a new name.  One West Bank is added in this list for consideration with exceptional circumstances since it is technically an 18 month CD but the yield of 2.75% makes the bank product noteworthy.

The list of the banks with the highest CD rates on a two year term was mostly unchanged however, the best two year CD rate in California dropped by two basis points for the week.  The best CD rate stands at 2.78% down from 2.80% the previous week; this CD rate is offered by American Plus Bank.  The previous two year CD rate leader, First Republic Bank, drops to second position after reducing the rate on their two year CD to 2.75%.  The range of two year CDs remains fairly tight with the lowest rate on the list a two year CD from Community Business Bank with a yield of 2.55%.

The rates on the five year CDs in California dropped as First Republic Bank reduced the rate on their five year CD from 3.85% to 3.75%.  First Republic’s five year CD remains the best CD rate after the rate reduction and matches the best national rate.  The second best CD rate drops appreciably with Broadway Federal Bank marketing a five year CD that has an interest rate of 3.56%.  CD rates in this term have little depth and continue to tumble with the lowest rate dropping down to 3.10%.

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