Five year CD rates continued their slide, along with rest of the bank CD terms, for the week of June 5, 2009.  The average of the top ten highest five year CD rates declined to 3.56% from 3.61% in the previous week.  The reduction in the five year term CD rates was the smallest percentage drop of the four major term categories ( six month, one year, two year and five year terms CDs ).

The highest five year CD rate available nationally comes from Intervest National Bank with an interest rate of 3.66%.  This rate is down from the best five year CD rate last week which stood at 3.75% and was a product of Acacia Federal Savings Bank.  Acacia has reduced their rate and is now offering the second best five year CD rate at 3.65%.  The rate of 3.65% is also being promoted by three other banks, Tennessee Bank of Commerce, Discover Bank and State Bank of India.

The lowest rate on the list of the top ten five year bank rates can be found at E-Loan at 3.35%, CD deposits are held by the parent company of E-Loan – Banco Popular North America.  The spread between the highest and lowest CD rates widened slightly to 31 basis points or 31/100 of a percent from last weeks 25 basis points.  The spread on the five best year CD rates, though wider, did not display spreads on the level found in the shorter term CDs.  This is generally a sign of bottoming process in CD rates.  As mortgage rates and Treasury rates have risen substantially in the past week, it would certainly seem reasonable that long term CD rates would end their decline and soon reverse direction.

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