In most normal interest rate markets, longer term CDs should pay a better interest rate than shorter term bank CDs.  However in some markets the rate spread between bank CDs with long term maturities and short term maturities can be inconsequential or even reversed.  The most common cause for finding some short term CD rates greater than long term rates is the competitive market is driving some banks to offer high rates on short term CD maturities to lure in new customers and new money.  As long as the bank is sound as well as FDIC insured and the terms of the CD are clear, these high CD rates are a bounty for the intelligent bank rate shopper.

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