CD interest rates were, by and large, unchanged for the week.  The best short term CD rates increased in yields slightly while long term CD rates moved lower.  Overall, the average rate for the top ten best CD interest rates remained in check.  The composite CD rate which measures the top ten highest CD rates with terms ranging from 3 months to 5 years was unmoved at 1.279 percent.

The week that ended August 26th saw a wide spectrum of economic data and reports including the GDP report showing growth of just 1.1 percent in the second quarter of the year, a Consumer Sentiment number reporting a fairly abysmal reading of 55.7 and Federal Reserve Chairman Bernanke speaking on the available options to stimulate the slow economy without offering details on what that may entail.

The economic news, oddly, pushed most Treasury rates higher with the exception of the very short term securities.  Perhaps the Treasury rate reaction was simply a bounce off of the lows that swept in the month of August.  The six month Treasury rate closed Friday at an unbelievable 0.02 percent.  The one year T-Bill closed at 0.09 percent.  These yields make bank CDs look like oversized returns that should be gobbled up. 

As short term Treasury rates lost ground, short term CD rates increased in yield.  The average rate for the top ten best three month CD rates was up by three basis points or 3/100ths of a percent.  The average rate for the top ten highest three month CD rates ended this past week at 0.603 percent.  The best three month CD available nationally comes from AloStar Bank which offers the short term certificate with a rate of 0.81 percent.  Virtual Bank’s 3 month CD, now owned by Sabadell United Bank, and the Hudson Bank 3 month CD follow at 0.75 percent

Six month CD rates also logged a gain in yield for the week.  The average rate for the best six month CD rates increased by just under one basis point, pushing the average yield up to 0.946 percent.  The race to offer the top six month CD rates is becoming a crowded field.  The AloStar Bank 6 month CD rate holds the lead at 1.05 percent.  Immediately behind Alostar is the Aurora Bank CD with a six month term at 1.03 percent and Virtual Bank’s six month CD with an interest rate of 1.01 percent.

One year CD rates failed to match the shorter term CDs and gave up yield this week.  The average one year CD rate dipped down to 1.186 percent which is a reduction of 0.011 percent week over week.  The best one year CD rates available continues to be a shoot out between Alostar Bank and E-Loan.  The Alostar Bank CD rate is at 1.27 percent while the E-Loan one year CD rate is a basis point lower at 1.26 percent.

Two year CD rates were lower on the week but the degree of the rate change was barely visible.  The average rate for the top ten best two year CD rates was down by .003 percent which left the average yield for the week at 1.389 percent.  CNBBank Direct is the leading source for this term with a CD interest rate of 1.50 percent.  Aurora Bank and Virtual Bank follow up with two year CD rates that are nine basis points lower at 1.41 percent.

The five year CDs once again were the big rate changers for the week.  A big rate change is only 2.4 basis points but at the current low levels, a few basis points become significant.  The average rate for the top five year CD rates is now 2.269 percent.  Urban Partnership Bank leads the five year CDs with an interest rate of 2.42 percent.  First Internet Bank CD rate of 2.40 percent is the next highest rate for a five year term followed by the Discover Bank CD at 2.35 percent.

To find the best CD rates by maturity with contact information please see the CD rate tables at labeled by term: 3 month CD rates, 6 month CD rates, 1 year CD rates, 2 year CD rates and 5 year CD rates.

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