CD interest rates endured a minor dip for the week ending December 2, 2011.  The average CD interest rate as measured by the Selectcdrates.com weekly CD rate index turned lower by less than half of one basis point for the week.  A one basis point change is equal to 1/100th of a percent.  The Selectcdrates.com CD rate index shifted down to 1.115 percent from 1.119 percent in the prior week.  The Selectcdrates.com weekly CD rate index measures the top ten bank CD rates for three month CDs, six month CDs, one year CDs, two year CDs and five year CDs. 

Stock and bond markets have continued to digest the illusory European solutions to their banking and sovereign debt problems which is keeping a money in Treasuries thereby keeping a lid on Treasury rates and bank rates.  With no real expectations that a measurable solution can arise in Europe, growth in Europe next to nothing and China apparently slowing, the prospect for growth and inflation driven higher interest rates is not going to materialize anytime soon.  I don’t think that is grammatically correct, but it is factually accurate.

The biggest rate drop this week was seen in the one year maturity bank CDs.  The average rate for the top ten highest one year CD rates slipped by 1.2 basis points, falling to an average yield of 1.078 percent.  The highest rate in the one year term category remained unchanged for the week.  The top one year CD rate remains at 1.15 percent and is available at both, Doral Bank Direct and CIT Bank.  The next best rate for the one year certificate follows quite a bit behind at 1.10 percent.  The second highest rate is also available at two banks; Sallie Mae Bank and Beal Bank hold the second best rates with CDs yielding 1.10 percent.

Dropping almost as much as the one year CDs was the six month term CDs.  The average six month CD rate gave up precisely one basis point over a period of a week.  The average six month CD rate rested at 0.781 percent after starting the week with a CD yield of 0.791 percent.  The best six month CD rate was also unchanged this week at 0.85 percent however; the number of banks offering that rate has been cut back.  Three banks now offer the highest six month rate of 0.85 percent including, Stonebridge Bank, Virtual Bank and One West Bank.

Both, the three month CD rates and the two year CD rates experienced equal reductions this week.  The average rate on these two CD terms is different but both maturities were lower by .5 basis points.  The three month rate dipped to 0.513 percent from 0.518 percent in the week earlier and the two year decreased to 1.251 percent from 1.256 percent in the previous week.

The best three month CD rate is the same as the old leader.  The Hudson City Savings CD rate for a three month term has been in the top spot throughout this quarter.  Hudson City continues to promote a three month CD rate of 0.75 percent, 15 basis point above the next best rate of 0.60 percent which can be found at Virtual Bank and One West Bank.

Two year CD rates were led by CIT Bank and American Express Bank.  These two banks have two year CDs with interest rates at 1.30 percent.  Running close behind is the two year CD of Transportation Alliance Bank or TAB which has a two year CD rate at 1.26 percent.

The final maturity included in the CD rate survey is the five year term.  Five year CD rates were unchanged on the week.  The average rate for the top ten highest five year CDs held at 1.951 percent.  State Bank of India leads the pack with a five year CD rate of 2.02 percent.  Hudson City Bank offers a five year CD with an interest rate of 2.00 percent or just two basis points lower.  Rounding out the top three five year CD rates is the five year from Intervest National Bank which promotes this term CD with a yield of 1.99 percent.

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

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