Six month certificate of deposit rates dropped measurably over the previous week.  All short term bank CD maturities were lower for the week with the six month yield falling the most among all maturities.  The average of the top ten best six month CD rates was pushed lower by six basis points or 6/100 of a percent.  The average rate for the six month certificate now stands at 1.41%. 

While the average of the six month rates dropped appreciably, the highest six month CD rate remained unchanged.  The highest six month CD rate available nationally comes from Ascencia Bank with a rate of 1.51%.  The next best rate is five basis points lower.  The second best six month rate can be found at State Bank of India with an interest rate of 1.46%.

One basis point behind State Bank of India is the six month certificate from UFB Direct that has an interest rate of 1.45%.  Three banks offer identical rates immediately following UFB Direct.  AmtrustDirect, now a division of New York Community Banks, La Jolla Bank and The Palladian Private Bank market six month CDs that yield 1.40%.

NewDominion Bank holds the fifth highest six month CD rate at 1.37%.  Aurora Bank and Giant Bank have six month rates just one basis point lower.  These two banks offer their six month CDs at 1.36%.  The remaining bank on the list is Nexity Bank which offers a six month certificate of deposit with an interest rate of 1.35%.

Week over week, eight banks reduced their bank rates for the week.  Four banks were pushed off of the list due to the magnitude of their rate reductions.  The four new banks that were included this week were Nexity Bank, Aurora Bank, The Palladian Private Bank and AmtrustDirect.  These banks had held their rates from the prior week an were elevated to the current positions on the list only because of the banks that had fallen off.  There were no rate increases for the week.

With all terms, except the ultra short term, Treasury rates falling in January the likelihood of rate increases on bank CDs in the near future looks highly unlikely.

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