The highest two year CD rates available nationally held firm once again. The best two year CD rate remained at 2.05% and is available from Tennessee Commerce Bank.

The second highest two year CD rate can be found at multiple banks. The next best rate falls five basis points behind the term leader with an interest rate of 2.00%. A 2.00% two year bank rates is available on the following CDs; American Express CD, Bank of Internet CD and Seacoast Commerce Bank CD.

NewDominion Bank offers the third highest two year CD rate. The NewDominion CD has an interest rate at 1.97%. One basis point below NewDominion Bank is the CD from Aurora Bank which earn an interest rate of 1.96%.

The remaining banks on the list of the top ten highest two year bank CDs all share the same interest rate. Four banks remain with CD yields at 1.95%. The bank CDs offering this rate include NOVA Bank CD, Eastern Savings Bank CD, Shore Bank CD and Ultima Bank Minnesota CD.

Although the average rate drop was quite mild this week, four banks changed their CD rates from the previous week. One bank, Acacia Federal Savings Bank, did not return to the current top ten list due to a rate reduction that fell below the minimum 1.95% cut off. The tenth bank added from the current bank rate survey to this week’s list is Eastern Savings Bank.

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Typically the highest CD rates are available for those investors and savers willing to invest their money into certificates of deposit with long deposit terms. While this investment guideline still holds in today’s market, the best national CD rate with a three month term offers a very competitive rate relative to the CD rates on the six month and one year term CDs.

The best three month CD rate comes from Goldwater Bank which offers the certificate with an interest rate at 0.90%. Goldwater Bank is an Arizona based bank chartered as a national bank. The bank has just one bank location in AZ but makes their bank CD accounts available nationwide via the banks online services.

By increasing the term of the CD by three months, the best national CD rate increases by 37 basis points or 37/100 of a percent. The best six month CD rate comes from Aurora Bank CD at rate of 1.27%. Aurora Bank is based in Delaware and accepts CD accounts online, nationwide. The bank is chartered as a savings association and has been FDIC insured since 1958. For a complete list of the best six month CD rates available nationally view the following page, six month CD rates.

The best one year CD rate this week remains at 1.55%. For a one year term CD, the best national CD rate is available from three financial institutions including; Sallie Mae Bank CD, Flagstar Bank CD and Ultima Bank Minnesota CD. A complete list of all the best one year CD rates available nationally can be viewed on the following page, one year CD rates.

The best two year CD rate jumps up to 2.10%. This interest rate is available at Tennessee Commerce Bank. Tennessee Commerce Bank is a Federal Reserve non member bank headquartered in Franklin, TN. A list of the best two year CD rates available nationally can be found at the following page, two year CD rates.

The highest five year CD rate is available at two banks. Acacia Federal Savings Bank which is chartered as a savings association based in Falls Church, VA and iGOBanking, both offer five year CD rates at 3.25% to lead the highest rates for this maturity. A list of the top ten highest five year CD rates available nationally can be viewed at the following page, five year CD rates.

CD rates are subject to change and additional conditions may exist to open these accounts. Contact the bank directly for the current CD rates and terms and conditions.

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The best two year CD rate average was lower by one basis point or 1/100 of a percent bringing the yield down from 2.35% in the previous week to 2.34% this week.  While the average rate for this term of bank CDs was relatively stable, the top CD rate fell appreciably. 

The highest two year CD rate available nationally now is at 2.37% which is the CD rate marketed by E-Loan.  The previous highest CD rate came from Tennessee Commerce Bank with an interest rate of 2.50%.  Tennessee Commerce’s interest rate reduction for this term bank CD dropped it off the top ten bank rate list altogether.  The current CD rate for the two year CD at Tennessee Commerce is at 2.15%.

The second best two year CD rate available nationally is only two basis points behind the rate leader at 2.35%.  Five banks on the list offer this CD interest rate including; American Express Bank, Ally Bank, Aurora Bank, Discover Bank and NewDominion Bank.  American Express Bank as well as Aurora Bank have been increasing their interest rate promotions recently, moving both banks higher on the list of the top ten bank CD rates with a two year maturity.  The lowest CD rate on the list for this week is now at 2.30%.

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Best short term CD rate – Danversbank with a four month CD rate of 2.50%.
Best one year CD rate ( almost ) – Choice Financial 13 month CD rate of 2.50%.
Best mid term CD rate – State Farm Bank with a 28 month CD rate of 2.75%.
Best long term CD rate – US Bank 59 month CD rate of 3.75%.

This is part two on the continuing saga of great CD rates that got away.  If you read part 1, which was not labeled part 1, you would know that these articles cover great CD rates available nationally that do not easily fit into the molds we use to measure CD rates.  All of these CD rates are still available at the time of this article.

The principal reason these CD rates do not fit or are not easily measured is that as nationally available CD rates they have odd month terms or maturities that do not have a category of measurement.  We have already covered US Bank’s 59 month CD rate that was at 4.00% earlier in the week and was just reduced to 3.75% – at 3.75% this CD rate is the highest five year CD rate now.  If a consumer were to shop for this rate on the largest CD rate search sites, it would not be identified, go ahead try it use google and look up CD Rates and troll the top 3-5 web sites.

The reason for the most search sites no including this CD rate offer is that the US Bank CD offer is on a 59 month term and thanks to my completion of first grade at Fiske School in Lexington, Massachusetts I know that would be one month shy of a five year term.  Since it is an odd month maturity it does not get measured in rate tables by the big websites.  This offer by US Bank, now at 3.75%, is the best five year CD rate available but can’t be found by the big web sites.  Hmmmm.

State Farm Bank’s 28 month CD at 2.75% was also covered as one that got away.  This CD rate is still available as well by State Farm Bank and even though this misses the term by a bit, if it were compared to two year CD rates it would be by far the best two year CD rate available. 

Todays’ first new CD rate find comes from Danversbank in er…Danvers, Massachusetts.  Danversbank offers a four month CD at 2.50%.  This is an online only CD that is available from any state in the nation is on a 4 month term with a CD rate of 2.50%.  You can not find a six month CD rate anywhere near 2.50%. 

Danverbank has assets of approximately $1.75 billion.  The bank turned a profit of $1.75 million in the first quarter of 2009 and turned a profit for the full year of 2008.  Noncuurent loans are only 0.46% of total loans outstanding.  The total risk based capital ratio is 14.98%, tier 1 cap ratio is 13.98% and core capital or leverage ratio is 10.12%, well capitalized.  Danverbank also took a pass on participation in the governments TARP program, “quite frankly, we didn’t need to” is the quote from President Kevin Bottomley.  One more time, “quite frankly, we didn’t need to”.

The second pick comes from Choice Financial Group in…..Grafton, North Dakota.  I have no idea where that is but I am confident the residents of the area have far higher ethical and moral standards than my neighbors ( whoops ).

Choice Financial has an internet only CD with a 13 month term that has an interest rate of 2.51%.  This CD rate is well ahead of the one year CD rates presently available, of course it is a 13 month term and the teachers at Fiske School would remind me that the really isn’t a one year term.  Well, frankly, I think I would accept the extra month for the additional 1/4 percent yield this CD delivers.

The CD rate is on what the bank calls their Rate Buider CD.  This bank CD has 13 month term, a 2.51% APY and a minimum deposit of $5,000.00.

Choice Financial Group is a Federal Reserve Non member bank.  It is regulated by the FDIC and the deposits are insured by the FDIC.  The bank has just slightly over $500 million in assets.  The bank earned a hair over $2 million in the first quarter of 2009.  Net operating income in 2008 was approximately $7 million.  Non current loans stood at 1.04%.  Total risk based capital ratio is 11.03%, tier 1 risk based cap ratio is 10.01% and core cap or leverage ratio is at 9.00%.  Choice Financial also did not take part in the TARP program.  What a coincidence.

Next week I will lay off the excessive Pepsi consumption and write slightly more coherently. 

Contacts for those banks reviewed:

Choice Financial
www.choicefinancialgroup.com
877-380-3623

Danverbank
www.danversbank.com
800-771-8200

State Farm Bank
www.statefarm.com
877-734-2265

US Bank
www.usbank.com
800-872-2657

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The average of the best CD rates for a six month term remains under 2.00% this week.  Six month CD rates were knocked down three basis points or 3/100 of a percent to end the week at 1.93%.  The highest CD rate in the six month category was unchanged, holding at 2.05% for the week.

The best one year CD rates moved lower by three basis points as well.  One year CD rates on the national level are now at 2.27% down from last weeks average of 2.30%.  The highest one year CD rate is currently at 2.35%.  Amboy Bank offers the one year CD rate at 2.35% and is the only one year CD paying a rate greater than 2.30%.  

In the two year CD rate class, the average bank rate deteriorated by two basis points from 2.52% to 2.50%.  Even though the average for this term was down by relatively small magnitude the top bank CD rates took a much greater knock.  The best two year CD rate is down by 22 basis points with the highest rate moving from 2.87% to 2.65%.  Discover Bank is now the term leader with the 2.65% interest rate.

Although most of the CD rate averages were lower for the week, fortunately the same can not be said for the rates on the five year term CD averages.  Five year CD rates gained six basis points to the average yield to close the week at 3.65%.  With the addition of Shelter Bank, the average of the five year CD rates not only rose but Shelter Bank took the top spot for the highest five year CD rate available nationally with an interest rate of 3.85%.  Shelter Bank is based in Columbia, Missouri and offers the CD rate through the internet as well as through Shelter Insurance agents that are located in a 14 state area.

As national CD rates continue to fall, investors shopping for the best CD rates in the local and regional markets will do much better than the averages available nationally as well as among the state bank rates.

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The top six month CD rates remain well ahead of the national averages.  The best six month CD rate in Illinois is at STC Capital on their limited deposit CD that has an interest rate of 2.75%.  This bank CD account is limited to amounts not exceeding $25,000.00.  The next best six month CD rate in Illinois drops considerably to 2.25%.  This CD rate can be found in a few Illinois banks including; BankChampaign, First Bank of Highland Park and International Bank of Chicago.

One year CD rates are also beating the national rates, with the lowest one year CD rate on the list surpassing even the best national rate.  The highest one year CD rate in Illinois is at Builders Bank which offers the CD with a rate of 2.60%.  The best bank rate within the category is at First Bank of Highland Park on their 17 month CD that yields 2.75%.  Several Illinois banks market one year CDs at 2.50% including; Town Community Bank & Trust, Western Springs National Bank & Trust, Elk Grove Village Bank & Trust and BankChampaign.

Two year CD rates in Illinois remain bountiful even with the low drop in the average rates.  The best two year CD rate is now at 3.00% and comes from International Bank of Chicago.  Town Community Bank & Trust falls 15 basis points back with a two year CD rate of 2.85%.  Only one basis point beneath that rate is a two year CD at State Bank of India which has an interest rate of 2.84% and is also on the best national rate list.

Five year CD rates in Illinois also offer plenty of opportunities.  The best five year CD rate stands at 4.00% for the second week in a row on the 59 month term CD from US Bank.  Two Illinois banks, All American Bank and First Bank of Highland Park offer five year CD rates at 3.75%.  The top three rates in Illinois within the five year term category includes Liberty Bank with an interest rate if 3.60% on an extended, 66 month term.

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The best six month CD rates in Tennessee are nothing to write home about.  The highest rate comes from Citizens Bank of East Tennessee on a seven month term that yields 2.01%.  Following this rate is a six month CD from Sumner Bank & Trust with a rate of 1.85%.  Five basis points lower is the six month CD of Greeneville Federal Bank that has an interest rate of 1.80%. 

The best one year CD rate is a tie with four Tennessee banks offering bank rates at 2.50%.  Citizens Bank of East Tennessee, Greeneville Federal Bank, Cornerstone Community Bank and Carter County Bank all offer rates of 2.50% on terms ranging from 11 months to 17 months.  The next best one year CD rate comes from First Alliance Bank with an interest rate of 2.31%.

Two year CD rates in the state are where the sweet spot is.  The best two year CD rate in Tennessee comes from Greeneville Federal Bank at 2.96% well above the best national rate.  Tennessee Commerce Bank is only nine basis points back with a two year rate of 2.87%.  Rounding out the top three bank rates is Citizens Bank of East Tennessee that offers a two year CD rate of 2.80%. 

Two Tennessee banks offer CD rates in the five year term category that eclipse the best national rates.  US Bank has a promotional 59 month CD that the bank recently increased the yield on to 4.00%.  Citizens Bank of East Tennessee follows with a five year CD that earns a rate of 3.75%.  Ten basis points below this offer is the five year CD of Tennessee Commerce Bank with a rate of 3.65%.

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The best six month CD rate in Illinois remains with STC Capital Bank of St. Charles, Il.  The rate is a stand out at 2.75% for a six month term but the deposit amount is capped at $25,000.00.  Following this rate are two banks that are offering CD rates at 2.25%.  International Bank of Chicago offers 2.25% on their six month CD while First Bank of Highland Park offers the rate on an extended term, nine month CD.

One year CD rates available nationally have been slumping for a consecutive weeks which has resulting in Illinois one year CD rates handily beating the best national bank rates.  The best one year CD rate in Illinois is the product of First Bank of Highland Park with a 17 month CD that has an interest rate of 2.75%.  State bank of Countryside follows with a longer, 18 month term that has a rate of 2.61%.  Only one basis point beneath this rate is the one year CD of Builders Bank that yields 2.60%.  To put the rates in perspective, especially for the longer terms, the best one year CD rate available nationally is at 2.53% while the best two year CD rate is at 2.87%. 

The best two year CD rate in Illinois remains well above the national rates.  International Bank of Chicago leads the state with their two year CD rate of 3.00%.  Broadway Bank shared the lead but has just reduced their promotional 25 month CD to 2.65%.  Town and Country Bank comes up next with a two year CD that is quite a bit lower but on par with national rates at 2.85%.  One basis point lower is the two year CD from State Bank of India with a two year CD that earns 2.84%.

The best five year CD rates comes from US Bank which has recently increased the rate they offer on their promotional 59 month CD to 4.00%.  Two Illinois banks, All American Bank and Inland Bank & Trust, are close behind with five year CDs at 3.75%.  Liberty Bank has a slightly longer than five year term CD, 66 months, that yields 3.60%.  More than few banks have five year CDs with rates at 3.50% including; CenTrust Bank, Midwest Community Bank and Broadway Bank.

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The six month CD rates in California dropped measurably for the week, declining from 2.28% to 2.21%.  Some of the reduction in rates is due to changes in promotional rates that are available on odd month CD terms.  Plaza Bank is one bank that encountered such a change.  Plaza Bank was last weeks leader in the six month term but was included on the top bank rate list with their nine month term CD.  That CD rate is no longer available and the new leader is Wilshire State Bank which also coincidentally leads the best national rate list.  Wilshire State Bank continues to promote a six month CD with an interest rate of 2.52%.  Note – this offer expires this week at which time they will be reducing the rate to 1.95%.

The best one year CD rates in California also gave up some ground up, falling from 2.53% at the start of the week to 2.51% at the close of the week.  The best one year CD rate is now the product of Mirae Bank with an interest rate set at 2.60%.  Mirae Bank is headquartered in L.A and has six bank branches in the surrounding area.  American Plus Bank and Hanmi Bank immediately follow this rate with one year CDs that yield 2.53%.  Only one basis point lower is the one year CD of Wilshire State Bank with a rate of 2.52%.

Two year CD rates in California tripped and fell six basis points or 6/100 of a percent to average 2.63% at weeks end.  Kaiser Federal Bank offers the best two year CD rate at 2.85%.  First Republic Bank maintains a two year CD with an interest rate of 2.80%.  American Plus Bank has the third highest CD rate available at 2.78%.

The average of the best five year CD rates moved in the opposite direction of the other terms and climbed for the week by seven basis points to end at 3.51%.  First Republic Bank has the highest five year CD rate at 2.80%.  American Plus Bank is close with a five year CD yielding 2.78%.  The remaining top bank rates with a five year term drop off quite a bit with Vineyard Bank offering the next best rate at 2.59%.  The outstanding bank rates on the list of the best five year CD rates all market five year CD s with rates just above 3.50%.

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The highest six month CD rates in Indiana are falling well behind the best national rates.  The best six month CD rate listed is on an extended, nine month term CD from First Bank Richmond with an interest rate of 2.00%.  Running a full 15 basis points lower are the CDs of Lafayette Savings Bank and Merchants Bank & Trust at 1.85%. 

The best one year CD rates in Indiana are also well behind the best one year national bank CD rates.  The highest one year CD rate is marketed by FCN Bank and Fifth Third Bank, both banks offering promotional 15 month CDs that yield 2.35%.  Following these bank rates, the next best two year CD rate is at 2.30% on a 13 month CD from River Valley Financial Bank.

The best two year CD rate in Indiana exceeds the best national rate by 13 basis points at 3.00%.  The highest rate for this term is promoted by West End Bank.  Peoples Trust & Savings Bank CD at 2.80% comes in second spot.  Three banks have CD rates five basis points lower at 2.75%; American Savings, First Federal Savings and Bippus State Bank.

The best five year CD rate in Indiana is slightly above the best national rate at 3.75% and is promoted by River Valley Financial Bank.  Shelby County Bank holds the next best five year CD rate at 3.60%.  Following these rates are two banks, US Bank and Bippus State Bank, with five year CDs at 3.50%.

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