CD rates took a little swoon downwards after the March Fed meeting concluded this past week.  As many economists and Fed watchers had expected, the Fed statement released at the close of the two day meeting removed the reference to the term patience as it applies to the Fed’s plans to change monetary policy in the near future.  Removing that reference would imply the Fed is expected to raise rates well before the end of the year, perhaps by as early as June. 

However, if the market had been expecting interest rates to rise once the Fed lost “patience”, something went afoul on that day.  Instead of rising, rates went south and the stock market headed north.  Over the course of the week, the ten year Treasury bond dropped from a high yield of 2.13 percent at the onset of the week to 1.93 percent by the time the week came to close.  A rather noteworthy 20 basis points rate reduction for five days of work.

Fortunately for savers and some fixed income investors, the long term Treasury rate reduction episode did not flow through to bank CD rates with anywhere near the same scale.  Based in the most recent survey of the top CD rates available nationwide conducted by SelectCDrates.com, CD rates dropped by less than one basis point or 1/100th of a percent for the week ending March 20. 2015

The SelectCDrates.com CD rate index was cut down by just 5/1000ths of a percent for the week, dipping from 1.171 percent to 1.166 percent.  The SelectCDrates.com index measures the top ten highest CD rates available nationwide on three month term CDs, six month CDs, one year CDs, two year CDs, and five years CDs. 

The majority of certificate maturities were unaltered for the week.  Two certificate of deposit maturities saw rate drops while the other three terms remained steady.  The highest yielding three month CDs had an average rate that ‘was held in check at 0.431 percent, the top ten best one year CD rates were unchanged at 1.171 percent, and the top two year certificates were also untouched at 1.321 percent.

Six month CD rates saw a rate drop on the week with the average rate on the top highest six month term accounts falling to 0.750 percent from 0.755 percent in the previous week.  Five year CD rates took a bigger hit with more than two basis points getting shaved off of the average yield on the long term accounts.  The average rate on the best five year CDs ended the week at 2.155 percent after starting bout at 2.177 percent.

Additional rate information on the best CD rates available from the most recent bank rate survey for the week ending March 20, 2015 can be found at three month CD ratessix month CD ratesnine month CD rates, one year CD rates, two year CD rates, three year CD rates, four year CD rates and five year CD rates.

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