Low interest rates on the short term, six month maturity bank CDs, continues to be the norm.  Six month CD rates fell again, on average, for the week ending July 3, 2009.  CD rates for this maturity have struggled to move higher throughout the year, undoubtedly being hindered by the lack of higher yielding substitute investments.  Short term Treasury rates moved lower for the week as well.  

The average for the best six month CD rates ended the week at 1.91% down two basis points or 2/100 of a percent from 1.93% for the previous week.  Fortunately, the highest six month CD rate was unchanged and still stands at 2.05%.  This rate can be found at FirstFedDirect.  FirstFedDirect is a division of First Federal Bank of California which was established to service Internet banking client relationships from all states other than California.

Following the rate promoted by FirstFedDirect is the six month CD marketed by La Jolla Bank which is available at 2.00%.  The third highest six month CD rate comes from Wilshire State Bank at 1.96%.  One basis point below this rate this the six month CD at The Palladian Private Bank that has an interest rate of 1.95%.  UFB Direct, which has dropped their rates precipitously on the longer term CDs, holds the fourth best six month CD rate at 1.90%.  Rounding out the top five bank rates in this term is Ascencia Bank with a six month CD rate of 1.86%.

Three month Treasury rates ended the week at 0.17% which was down three basis points from the prior week.  The six month Treasury rate snuck in a gain of one basis point to end the week at 0.32%.  The six month Treasury had reached as high as 0.52% during the year but started the year just about where it is now, on Jan 2 it stood at 0.28% and Jan 5 it was at 0.32%.

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