Bank certificate of deposit interest rates continued to move lower last week.  All bank CD maturities turned lower with the exception of the long term, five year bank CDs.  

Based on our most recent survey of the top ten best bank CD rates, the 6 month CD rates, one year CD rates and two year CD rates were all lower while the five year remained unchanged.

The average yield for the best six month CDs dropped by a staggering six basis  points or 6/100 of a percent bringing the average yield down  to 1.41%.  The highest six month CD rate available nationally now stands at 1.51%.

The average yield for the top ten best one year CDs dropped by five basis points or 5/100 of a percent.  The average rate on the one year CD is now 1.83% with the top national rate coming in at 1.91%.

The average rate on the two year term bank CDs performed slightly better than the shorter term with the average of the best two year CD rates losing three basis points.  The average rate on the two year term certificate was pushed down top 2.21%.  The best two year CD rate is offered at 2.40%.

The five year CDs ended the week unaltered.  The average rate of the top ten best five year CDs closed the week at 3.28% with the highest five year rate available at 3.40%.

Rates have dropped rather measurably this winter from already low year levels.  The prospect of economic growth has done little to move bank rates.  While Treasury rates started to move upwards in December giving hope to the possibility of higher bank savings rates in the near future.  Unfortunately, most of that upward movement was reversed during the first twoweeks of January with the one year Treasury rate alone dropping 12 basis points in the first two weeks of January.  

For now, it looks as though low bank certificate of deposit rates and savings rates are here to stay.

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