CD rates continued to move lower this past week.  The average of the best national bank CD rates was down for all terms with the exception of the longer term, five year CDs.  The declines were measurably smaller than last weeks move, however this may have more to do with the fact that bank rates now are so much lower.  Since the average rate on all CD terms is lower now, the smaller absolute move is still striking.

The average of the best CD rates for a six month term remains under 2.00% this week.  Six month CD rates were knocked down three basis points or 3/100 of a percent to end the week at 1.93%.  The highest CD rate in the six month category was unchanged, holding at 2.05% for the week.

The best one year CD rates moved lower by three basis points as well.  One year CD rates on the national level are now at 2.27% down from last weeks average of 2.30%.  The highest one year CD rate is currently at 2.35%.  Amboy Bank offers the one year CD rate at 2.35% and is the only one year CD paying a rate greater than 2.30%.  

In the two year CD rate class, the average bank rate deteriorated by two basis points from 2.52% to 2.50%.  Even though the average for this term was down by relatively small magnitude the top bank CD rates took a much greater knock.  The best two year CD rate is down by 22 basis points with the highest rate moving from 2.87% to 2.65%.  Discover Bank is now the term leader with the 2.65% interest rate.

Although most of the CD rate averages were lower for the week, fortunately the same can not be said for the rates on the five year term CD averages.  Five year CD rates gained six basis points to the average yield to close the week at 3.65%.  With the addition of Shelter Bank, the average of the five year CD rates not only rose but Shelter Bank took the top spot for the highest five year CD rate available nationally with an interest rate of 3.85%.  Shelter Bank is based in Columbia, Missouri and offers the CD rate through the internet as well as through Shelter Insurance agents that are located in a 14 state area.

As national CD rates continue to fall, investors shopping for the best CD rates in the local and regional markets will do much better than the averages available nationally as well as among the state bank rates.

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