Once again, CD interested rates have declined very slightly.  Market reaction to the recurring disturbances over European government debt levels has driven interest rates lower once again.  Most of the deterioration in CD rates was seen in the longer term banks CDs with the short term CDs holding relatively stable.

Overall, CD interest rates were reduced by just under two basis points or 2/100’s of a percent for the week ending November 4, 2011 as measured by the Selectcdrates.com CD rates index.  The Selectcdrates.com CD rates index measures the top ten highest CD rates for three month term CDs, six month CDs, one year CDs, two year CD and five year CDs.  The CD rate index dipped down to 1.139 percent this week from a level of 1.158 percent in the previous week.

The average rate for the top three month bank CDs was left unchanged.  The best three month CD rates have been a stand out recently by simply holding steady.  With an average rate of 0.527 percent, the average rate on three month CDs has not changed in over four weeks.  The best three month CD rate continues to come from Hudson City Savings Bank with a yield at 0.75 percent.  Virtual Bank 3 month CD and One West Bank’s 3 month CD remain unchanged in second place with yields at 0.60 percent.  

Six month CD rates took a haircut of 1.5 basis points.  The average rate for the top ten best six month CDs dipped to 0.812 percent from 0.827 percent in the previous week.  The top rate was unaltered with the AloStar Bank six month CD holding at of 0.86 percent.  The next best six month CD rate is just one basis point lower from the leading rate and is available at multiple banks.  Four banks offer six month CDs this week with yields at 0.85 percent.  The four banks providing the second best yield in the six month term are Ascencia Bank, One West Bank, Virtual Bank and Stonebridge Bank.

The best one year CD rates showed no change with the average rate holding at 1.095 percent.  While the average rate was unchanged, there was new bank competing for the highest rate with a one year maturity.  Popular Community Bank is now offering a one year CD rate of 1.15 percent which matches the rate of Doral Bank Direct making both banks the issuers of the highest one year CD rates.  Following these two banks is CIT Bank which promotes a one year CD with an interest rate of 1.13 percent or just two basis points lower.

The two year CDs experienced a rate gain this past week.  The average rate for the top ten highest two year bank CD rates climbed by less than one basis point.  The rate increases put the average yield at 1.273 percent from 1.266 percent in the week earlier.  The highest two year CD rate is 1.30 percent.  The top rate is available at four banks, including; Ultima Bank of Minnesota, American Express Bank, CIT Bank and AloStar Bank of Commerce.

The big letdown for the week was on the long end of the CD yield curve.  Five year CD rates weakened by over five basis points, putting the average rate under 2.00 percent.  The average five year CD rate came down to 1.987 percent by the time the week came to a close.  The term leader in the two year category is Nationwide Bank which markets a five year CD rate of 2.05 percent.  Not far behind is State Bank of India where a five year CD can be obtained with a yield of 2.02 percent.  Discover Bank, First Internet Bank, Hudson City Bank and Intervest National Bank all follow with five year CDs at 2.00 percent.

To find more information on the best CD rates by maturity please see the following CD rate tables at Selectcdrates.com: three month CD ratessix month CD ratesone year CD rates, two year CD rates and five year CD rates.

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