Bank certificate of deposit rates managed yet another week of declining yields.  The best CD rates available nationally were lower across all CD maturities with the exception of the long term bank CDs which ended the week with a modest increase in the average interest rate.

The average of the best six month CD rates fell by nine basis points or 9/100 of a percent for the week.  The average of the best six month CD rates dropped down to 1.59% from the previous week’s average of 1.68%.  The highest six month CD rate fell dramatically with the loss of the Atlantic Coast Bank six month promotional offer that was at 2.25%.  The current best national bank CD rate is at Ascencia Bank with a six month CD rate of 1.76%.

The best one year CD rates available nationally were down on average by two basis points for the week.  The average yield for the top ten best one year CD rates closed the week at 2.02% down from the prior week’s average of 2.04%.  The top one year CD rate moved lower by 30 basis points.  The highest one year CD rate is presently marketed by Amboy Bank which has a one year CD with an interest rate of 2.10%.

Two year CD rates available nationally also moved lower by two basis points.  The average of the top ten best two year CD rates dropped from 2.33% to 2.31% by the close of the week.  The highest two year CD rate comes from Atlantic Coast Bank with a two year CD that yields 2.40%.

The best five year CD rates bucked the trend with the average yield climbing higher.  The average of the top ten best five year CD rates moved higher by two basis points, pushing the yield from 3.39% to 3.41%.  The best five year CD rate is available at two banks.  iGOBanking offers a five year CD rate at 3.50% as does Flagstar Bank, though the Flagstar bank rate is dependent on the region or zip code of the bank CD holder.

In the past few weeks there has been a discernible trend of increasing volatility with the best CD rate offers.  The top promotional bank CD rates are rising above the average by significant margins; however, the rates are most often promotional offers that are subsequently reduced after a predetermined time which then drops the bank rate below the top rates in that term category.  Shopping and comparing CD rates nationally and among regional and sate banks is necessary to find the best rates available in this tight market.

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