Bank CD rates dropped just slightly for the week ending October 28, 2011.  Based on the most recent survey of CD interest rates performed by, the average rate on the top ten best CD rates covering maturities of three months through five years fell by less than one basis point.  The CD rates index ended the week at 1.158 percent after closing out the previous week at 1.150 percent.  One basis point is equal to one-hundredth of one percent.

Interest rates gyrated rather appreciably during the week as a solution to the European debt problem appeared to be within reach.  A possible end to the European debt nightmare had sent stock prices higher bringing money out of low risk assets like Treasury bonds and pushing the interest rates higher on Treasuries along with mortgage rates and to a lesser extent, bank savings and CD rates.  A deal to solve the European troubles remained in questioned as the week came to a close and by Friday, interest rates started to settled down and move lower from their peaks reached mid week.

Three month CD rates remained firm for the third consecutive week.  The average rate on the top ten best three month CD rates available nationally held steady at 0.527 percent.  The three month CD at Hudson City Savings Bank is the term leader with an interest rate of 0.75 percent.  The CDs at Virtual Bank and One West Bank run a distant second with three month yields at 0.60 percent.  

Six month CD rates received a pretty good kick in the behind which knocked down the average rate for this CD maturity by over three basis points.  This week’s rate reduction left the average rate on the top ten highest six month CD rates at 0.827 percent. The AloStar Bank six month CD rate is now the best CD rate with a yield of 0.86 percent.  Running one basis point behind the bank leader are the CDs marketed by four separate institutions.  Ascencia Bank, One West Bank, Virtual Bank and Stonebridge Bank all offer six month CD rates at 0.85 percent to hold the number two spot.

One year rates were weaker by just over one basis point for the week.  The average rate for the top one year CD rates ended the week at 1.09 percent after opening at 1.104 percent.  The top three bank rates for this maturity are unchanged from earlier week.  The top three bank rates include; Doral Bank’s one year CD at 1.15 percent leads, followed by CIT Bank with a one year rate of 1.13 percent and AloStar Bank which promotes a one year CD at 1.12 percent.

Two year CD rates slumped by 1.2 basis points.  The average two year rate stands at 1.266 percent after dipping down last week to 1.278 percent.  Three banks offer the best two year CD rates.  Ultima Bank of Minnesota, American Express Bank and AloStar Bank of Commerce all offer two year CD rates at 1.30 percent.  Pacific Mercantile Bank follows this trio with a two year CD rate of 1.28 percent.  USAA Bank had been one of the bank rate leaders in this term but has subsequently reduced their rate and is now not making the cut off for the top ten best rates with a two year term.

Five year CD rates inched higher this week.  The average rate on five year CDs increased by almost two basis points to 2.039 percent.  The rise in yield on the best five year CDs was driven almost entirely by Urban partnership Bank which increased their five year term CD to 2.42 percent.  At the time of this publication, that rate has been reduced down to 1.81 percent.  The second best five year CD rate comes from Nationwide Bank with a yield of 2.05 percent. In third place is the certificate available at Sate bank of India which offers the five year term CD at 2.02 percent.

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

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