Investors shopping for FDIC insured certificates of deposit nationwide saw some mild swings in the best CD rate averages for different terms.  The short end of the curve dropped measurably from 2.22% average on the top 10 best six month CD rates last week to 2.14% this week.  All other terms experienced a mild increase in average yields.  The average rate for the best one year CD rates offered nationally increased by three basis points as did the rates on the two year nationally offered CDs.  The five year CD rates noticed a seven basis increase in average rate for the week.

Since most investors don’t expect interest rates in general to pick up until next year, many advisers believe it doesn’t make sense to tie up your money for a long period in bank CDs.  Therefore more CD investors are rolling current CDs into six month and one year certificates of deposit.  With the six month CD rate dropping, the prudent investor has to shop and compare before plunking down their cash in the local bank.  On the national market the only term CD crossing the 3.00% rate threshold is on the five year term.  For investors willing to accept odd month maturities and view the local state CD rates you can do much better than the national averages.  In Georgia, all of the top one year CD rates are at 3.00% or greater.  Maryland has banks with five year terms at 4.00% or greater.

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