The best CD rates for the first week of July were up modestly on the back of a better than expected monthly jobs report.  Relative to the strength in the jobs report, the overall increase in CD rates was quite tame, rising by just 3/1000ths of a percent from the last week in June. 

In the most recent survey of bank CD rates conducted on the close of business July 3rd, the CD rate index increased to 1.114% from 1.111% in the previous week.  The CD rate index measures the top ten highest CD rates available nationally for three month CDs, six month CDs, one year CDs, two year CDs, and five year CDs.

Right before the July 4th holiday extended weekend kicked off, the Bureau of Labor Statistics released the monthly jobs report for the month of June.  The report showed a larger than expected increase in total nonfarm payroll employment of 288,000.  The report also mentioned revisions to the two previous months that resulted in a combined increase of 29,000 more jobs than originally reported.  The report surprised the market which pushed interest rates and stock prices higher. 

While this story of rates and jobs makes good headlines, the truth is that any rise in bank CD rates were made prior to the report or were being put in place by banks that increased their rates prior to the release of the jobs data.  CD rates are sticky, often moving slowly to changes in the market place instead of anticipating or leading changes.

While the overall return on bank CDs has increased this past week, not all maturities showed an increase in the average rate of return.  The best three month CD rates and one year CD rates were unchanged for the week.  The average rate on the top ten highest three month term certificates remained at 0.402% and the average rate on the top one year CDs held at 1.060%.

Six month CD rates were measurably higher on the week, increasing by one basis point or 0.01 percent.  The average rate on the top ten highest six month bank CDs moved up to 0.747% from 0.737% in the week earlier. 

Two year CD rates,  were up by half as much as the six month term certificates with a week over week rise of 5/1000ths of a percent.  The average yield on the highest two year certificates came in at 1.207% after closing at 1.202% in the prior week. 

The five year term CDs also showed a rate increase for the week.  Five year CD rates were elevated by 4/1000ths of a percent in the most recent bank CD rate survey.  The average yield on the ten highest five year bank CDs rose to 2.156% from 2.152% in the preceding weekly survey.

A list of the best CD rates available across the nation is available to help consumers shop and compare the highest CD rates by maturity using the links highlighted.

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