Despite the combined one, two punch of comments from the Fed on the outlook for low inflation and most bank CD rates moving lower, two year CD rates managed to rise for the week ending July 3, 2009.  The average of the best two year CD rates stood at 2.51%, an increase of three basis points or 3/100 of a percent for the week.

Though the averages managed to gain on the yield for the week, the top two year CD rate remained unchanged.  The best two year CD rate is available at Tennessee Commerce Bank which has continued to offer a two year certificate that yields 2.65%.  The next best rate comes from State Bank of India which increased the rate on their two year certificate of deposit to 2.63%.  From this point, bank rates slip quickly. 

The third highest rate on a two year CD falls to 2.50%.  Four banks offer the two year CD at 2.50% including; Discover Bank, Intervest National Bank, La Jolla Bank and TriState Capital Bank.  E-Loan follows these financial institutions with a two year CD at 2.47%.  Two basis pints beneath this rate are the CDs of Acacia Federal Savings Bank and One West Bank which yield 2.45%.  The top ten two year CD rates conclude with the 2.41% offer from AIG Bank.

Many fixed income investors are struggling with the anemic returns provided by the current certificates of deposits yields.  However, not only are there several solid returns available among the best CD rates but state and regional bank CDs offer investors rates that are frequently higher than the national rates.  With the Feds comments on the possibility of continued low inflation rate while the stock and commodity markets continue to yo-yo, investment choices among these low bank CD yields are not that unattractive after all.

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