The average for the best five year CD rates available nationally managed to produce a small gain in yield for the week ending September 25, 2009.  In a week where the two year CD rates lost a little on yield and the six month CD rate as well as the one year CD rate held steady, an incremental rise in rates is something to cheer about.

The five year CD rate average ended the week up two basis points or 2/100 of a percent boosting the yield up to 3.40%.  The best five year CD rate was unchanged at 3.50%.  The largest change in the list of the top five year CD rates came form State Bank of India in New York.  State Bank of India increased their five year CD rate from 3.34% the prior week to 3.44% making it the second best five year CD rate available.  Both Citibank and iGOBanking hold the number one position with five year CDs at 3.50%.  

The increase in rates follows a week in which long term Treasury rates moved lower.  Short term Treasury mimicked the short term bank CDs, mostly running in place for the week as well as the month.  However, the long term Treasuries slid for the week.  The five year Treasury rate started the week at 2.49% and closed the week at 2.36%, a measurable drop in five business days.  The ten year Treasury drop was more dramatic, the rate on the ten was lower by 15 basis points moving the rate down to 3.34%.

Once again, the smart investor should e looking at the national bank CD rates as a gauge before comparing the CD rates that are available in your individual state.

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