Bank CD rates were just modestly lower for the week ending September 11, 2009.  The short term, six month CD rates took the brunt of the pain while the one year and five year CD rates held steady and the two year CD rates showed a slight loss in yield. 

The best six month CD rates available nationally lost three basis points or 3/100 of a percent ending the week with an average yield of 1.72%.  The average rate drop may be a little deceiving, since the top three bank rates in this term were unchanged.  The force driving down the average yields was in not in the top of the list where the highest CD rates are but in the lower half where the rate reductions were measurable.

One year CD rates held constant at 2.04% for the week.  The top bank rate in the one year term actually gained some ground with Umbrella Bank offering the best one year CD rate at 2.15%.  Umbrella Bank’s one year CD rate is five basis points above last week’s top rate which was at 2.10% offered by One West Bank. 

The average of the best two year CD rates lost one basis point moving from 2.36% up to 2.35% at the week’s close.  The top rate held by Tennessee Commerce Bank was unchanged week over week. 

Five year CD rates were also unaltered for the week, with the average rate holding at 3.38%.  The top ten bank CD rates in the five year term category were all unchanged for the week. 

As the FDIC continues on a brisk pace of bank closings in 2009, the consequence of this action has been to bring down CD rates in some of the states that have been deviating measurably from the average CD rates.  Since bank rates began to fall at the end of 2008, the best opportunities have mostly been found in the state bank rates as opposed to the national bank rates.  Some states have more competition and some have less making the change from state to state dramatic, for instance the best one year CD rate in Georgia is at 2.50% while the highest one year CD rate in Ohio is only 1.81%.  The bank closings in some of the states that have the greatest spread form the average rates has ultimately impacted all the competitive pressures in the state and moved rates lower.

To find the best rates, search the best national rates first and then look over the bank CD rates in your state to see which is higher.

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