Improving economic data has driven interest rates higher including the rates on U.S. Treasuries and home mortgages however; CD rates did not follow along.  Based on the most recent survey of the top bank CD rates performed by, the national average CD rate moved down, not up for the week ending March 16, 2012.  The average CD rate covering the top ten best CD rates available nationally shed 2/1000ths of a percent, falling to 1.058 percent from 1.060 percent in the week earlier.

Generally improving economic reports have sent bond prices lower and interest rates higher including mortgage rates and Treasury rates.  Bank CD rates generally lag other fixed income securities and this year, the excess reserves held by banks may act as a force keeping bank savings rates and CD rates lower as banks are in little need of attracting new long term account holders at costly interest rates.

The best three month CD rates available nationally were lower by the absolute slightest of margins.  The average rate on the top ten highest three month bank CDs dipped by 1/1000th of a percent going down to 0.506 percent from 0.507 percent in the previous week.  While the average rate for the top ten highest three month CDs was little changed the highest rate was in fact higher on the week.  The best three month CD rate is now the product of E-Loan which offers the three month CD with an interest rate of 0.65 percent.  This rate is followed Virtual Bank’s three month CD that has a rate of 0.60 percent.

Six month CD rates spent another week sitting in neutral.  The average rate found on the top ten highest six month CD rates was unchanged for the second consecutive week.  The average interest rate for these term CDs remained at 0.764 percent.  The best six month CD rate continues to be with AloStar Bank of Commerce at 0.85 percent.  Colorado Bank and Virtual Bank also continue to have the second best six month CDs with yields of 0.80 percent at both banks. 

One year CD rates were down by almost one basis point or 1/100th of a percent this past week.  The best one year CD rates were knocked down to 1.050 percent from 1.059 percent in the week earlier.  The top yield continues to be at Doral Bank with a rate of 1.15 percent.  CIT Bank jumped into second place with the next best one year CD.  The one year CD at CIT Bank has an interest rate of 1.08 percent.

The top two year CDs followed the six month maturities by holding firm.  The average rate for the top ten highest two year CD rates was unaltered over the week at 1.176 percent.  The best two year rate comes from CIT Bank with a yield of 1.26 percent.  Virtual Bank has two year CD running five basis points behind the term leader at 1.21 percent.

Five year CDs ran in place just like the two year and six month maturities.  The average yield for the best five year CD rates was left in check this week at 1.796 percent.  The highest yielding five year CD can be found at State Bank of India which offers the five year term certificate with a rate of 1.96 percent.  Seacoast Commerce Bank has the next highest five year CD rate at 1.85 percent.

To find more information on the highest CD rates by maturity for the March 19, 2012 CD rate survey please see the following CD rate tables at three month CD ratessix month CD ratesone year CD rates, two year CD rates and five year CD rates.

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