The best CD rates in California were lower across all maturities for the week ending October 9, 2009.  The largest drop on average was on the short term bank CD rates and the smallest drop occurred in the five year rates.

The best six month CD rates in California fell by eight basis points or 8/100 of a percent.  The highest six month CD rates averaged 1.72% for the week, down from the prior week’s average1.80%.  The best six month CD rate in California is marketed by United Pacific Bank which offers a six month CD with an interest rate of 1.88%.

One year CD rates in California were off by five basis points for the week.  From the previous week’s average of 2.10%, the average for the best one year CD rates in California stands at 2.05%.  The highest one year CD rate is available at Golden Security Bank which offers a one year CD at 2.18%. 

Two year CD rates in California were worse by six basis points bringing the average yield to 2.30%.  The leader in the California two year maturity is Mutual of Omaha Bank.  Mutual of Omaha promotes a two year CD that yields 2.35% currently.

The best five year CD rates in California were knocked down by four basis points.  The average yield for the five year bank CDs moved downward from 3.31% t 3.28% at the close of the week.  The highest five year CD rate comes from Broadway Federal Bank which has a five year CD rate at 3.56%.

Overall, the reduction in average yields in brings the California CD rates more in line with the best national bank CD rates.  The best six month CD rates in California continue to exceed the best national bank rates available as does the five year term CD in California.  The best two year CD rates are on par with the best national two year rates while the one year is superior in the national market primarily due to the new two year CD rate at ING Direct.

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