The highest CD rates available in the month of July have moved higher across all account maturities.  Short term CD rates have popped right along with long term rates however, the middle of the yield curve for certificates of deposit have showed the strongest performance as the month of July comes to a close.

Average yields climbed on all popular certificate of deposit terms this month.  The long term, five year CDs average yields climbed as did the rates found on the six month and one year certificates.  The breadth of the rate expansion pushed the CD rate index up to 1.543% on July 28, several basis points above where it was at the start of the month.

The CD rate index measures the average rate on the highest yielding six month, one year, two year, and five year bank CDs that are available nationally.

Short term CD rates have been moving northwards starting at the end of the second quarter shortly after the hawkish actions by the Federal Reserve.  But, average yields on the top performing accounts got a big shot in the arm when Crestmark Bank entered the market with their current round of consumer CD rate promotions.

At 1.50%, the Crestmark Bank six month CD rate is head and shoulders above the competition as are the rates offered by the bank on their other short term CD products including the three month, two month, and one month CD accounts.  Running a good 13 basis points, one basis point is equal to 1/100th of a percent, behind Crestmark’s offer is the six month certificate offered by First Internet Bank which comes with an interest rate of 1.37%.

Crestmark Bank also leads the list for the highest one year CD rates, along with the highest two year CD rate.  In the one and two year categories, the spread between the top yielding accounts is narrower than the spread in the ultra-short maturities.

The top rate for a one year bank CD is 1.70%, available through Crestmark. Amboy Bank has a one year CD just five basis points lower at 1.65% and BankDirect is another five basis points down from there with a one year CD rate of 1.60%.

In the two year term accounts, Crestmarks’s promotional rate of 1.85% leads the pack.  Three banks share the number two spot with two year CD rates at 1.81%.  The three runner ups include TIAA Direct, First Internet Bank, and EverBank.  Technically, EverBank is part of TIAA Direct after their merger and identical rates offered across the spectrum of accounts offered by both of these two “divisions”.

All of the top ten highest five year CD accounts have interest rates at or above 2.25%.  Three banks, Synchrony Bank, Sallie Mae Bank, and Popular Direct, market five year maturities at 2.35% to lead the group.  Another four banks, Barclays Bank, TIAA Direct, First Internet Bank, and EverBank, offer five year certificates with interest rates at 2.30%.  The remainder of the banks with high yield, five year term CDs come with rates right at 2.25%.

While fixed income investors are not going to watch their returns swell overnight from their income stream in bank CDs, the trend is looking up. And as the economy continues to pick up stream, 2.60% GDP in the third quarter, rising rates looks like a trend that will not break any time soon.

More information on the banks and bank rates in the current rate survey conducted by for the week ending July 28, 207 can be found at the following top ten lists: three month CD ratessix month CD ratesnine month CD rates, one year CD rates, two year CD rates, three year CD rates, four year CD rates and five year CD rates.

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