CD interest rates made another mild retreat over the past week.  The minor rate reduction comes on the heels of a rate drop of similar proportions that took place in the previous week.   On the face of it, the interest rate reductions may not seem like a whole lot, but when CD rates are holding at their current very low levels, consecutive rate drops no matter how small can be damaging to savers rates of return and investment portfolios.

Based on the most recent survey of the best bank CD rates performed by Selectcdrates.com, the average rate on the top bank CDs across various maturities skidded lower by 4/1000ths of a percent.  The CD rate index which measures the highest CD rates for three month CDs, six month CDs, one year CDs, two year CDs and five year CD fell to 1.042 percent from 1.046 percent in the previous week.

Of the five bank CD maturities included in the CD rate index, four CD terms displayed lower interest rate while one term was left unchanged.  The average rate on the best six month CDs was the one term holding steady week over week with an average CD interest rate of 0.775 percent.

The best three month CD rates moved ever so slightly, slipping lower by just 1/1000th of a percent.  The minute rate drop put the average three month CD rate at 0.477 percent compared to 0.478 percent in the prior week.

One year CD rates drifted lower by 7/1000ths of a percent over the week.  The average rate found on the top ten best one year CD rates closed the week at 1.059 percent, off of last week’s average rate of 1.066 percent.

The highest two year CD rates experienced a decline similar to that generated in the one year certificates, dropping 5/1000ths of a percent on the week.  The average yield on the top two year bank CDs ended at 1.198 percent after starting the week with an average yield of 1.203 percent.

Five year CD rates split the rate change gap of the one year and two year CDs and declined by 6/1000ths of a percent.  A drop of .006 percent pushed the average five year CD rates down to 1.700 percent from 1.706 percent in the week earlier.

Additional bank CD terms measured in the weekly Selectcdrate.com survey that are not held as widely as the top five maturities include the CD rate index include the nine month CDs, three year CDs and five year CDs.  Due to the lower investment rates in these certificates there is less volatility between the top bank CD rates.  The interest rates offered on the top ten best nine month CD rates remained unmoved at 0.786 percent.  The top three year and four year CD rates were also unchanged with yields holding at 1.316 percent and 1.437 percent, respectively.

To find more information on the highest CD rates by maturity found in the December 10, 2012 CD rate survey please see the following CD rate tables: 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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