As the markets absorb the new Fed policy to buy long term bonds, referred to as operation Twist, certificate of deposit rates continue to press on to lower levels.  This week, CD interest rates reacted to the Fed’s desire to drive long term rates lower with CD rates experiencing yet another down week.  Unfortunately, it wasn’t just long term CD rates that were impacted.  Short term bank CD rates and midterm CD rates moved lower as well.

The CD rate index which measures the top ten best three month CD rates, six month CD rates, one year CD rates, two year CD rate and five year CD rates, dropped by 1.4 basis points.  The index rested this week at a level of 1.197 percent after slumping in the previous week to 1.211 percent. 

Although the new Fed program is intended to make long term rates lower, the best long term CD rates got off pretty light this past week.  The average rate for the top ten best five year CD rates was off by less than one basis point, one basis point is equal to 1/100th of a percent, leaving the average yield at 2.12 percent.  The best five year CD rate available nationally is the product of AmTrust Direct which markets a five year certificate at 2.25 percent.  This rate is followed by the five year CD at First Internet Bank which promotes the five year certificate with a rate of 2.20 percent.

Moving down the yield curve, two year CDs gave up two basis points this week.  The interest rate for the top ten highest two year CDs now stands at 1.317 percent.  There is currently a three way tie for the best two year CD rate.  Aurora Bank, CNBBank Direct and Ultima Bank all offer two year bank CDs with a yield at 1.35 percent.  The next best two year CD comes from two banks.  Both, NewDominion Bank and Ascencia Bank have two year CD with rates at 1.31 percent.

Rates for one year CDs were hit hard, falling by just shy of three basis points.  The average rate for the top ten best one year CD rates ended this week at 1.112 percent. Doral Bank Direct markets the top one year CD with an interest rate of 1.15 percent.  The next best one year CD rate is just two basis points lower at 1.13 percent and is available at Ascencia Bank.  AloStar Bank of Commerce’s one year CD and Aurora Bank’s one year CD follow one more basis point back at 1.12 percent.

The best six month CD rates barely moved over the week.  The rate for the top six month bank CDs was down by less than one basis point to an average interest rate of 0.898 percent.  Giant Bank, Aurora Bank and Ascencia Bank continue to hold the best one year CD rates with all three banks promoting a one year CD with a rate of 1.00 percent.  Surprisingly, the runner up comes from CalFirst Bank and is a whopping 12 basis points lower at 0.88 percent.

Short term, three month CD rates, fell by exactly one basis point.  The reduction in rate brought the average three month CD rate down to 0.537 percent from 0.547 percent in the prior week.  Hudson City Bank continues to hold the number one spot with a three month CD rate of 0.75 percent.  The three month CDs from One West Bank and Virtual Bank share the number two spot with three month CD rates of 0.60 percent.

To find more information on the best CD rates by maturity please see the following CD rate tables at 3 month CD rates, 6 month CD rates, 1 year CD rates, 2 year CD rates and 5 year CD rates.

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