The long term erosion in CD rates that has occurred through most of 2010 has received a pause this week based on the date form the most recent survey of bank CD interest rates performed by

A pause in CD interest rate returns is welcome relief for bank CD investors but is even more refreshing in light of the continued slide in Treasury rates. In the previous week, Treasury weeks continued to go down even further as market uncertainty has pushed money out of the stock and commodities market and into safe and secure fixed income investments.

CD rates for the six month term CDs managed to show a slight increase in yield for the week. The average yield for the highest six month CD rates increased by one basis point or 1/100 of a percent on the week. The average rate for the top ten best six month CDs ended the week at 1.22%, up from last week’s average yield of 1.21%.

The best one year CD rates ended the week right where they started. The average interest rate on the best one year bank CDs available nationally remained at 1.53%.

Two year CD rates followed the one year term certificates and remained stagnant week over week. The average yield for the top ten best two year CD rates remained at 2.01% on the close of Friday.

The five year CD rates unfortunately moved in the opposite direction and displayed a loss in yield for the week. The average yield for the top ten best five year CD rates available nationally was down for four basis points for the week. The average rate earned on the highest five year term deposits closed at 3.05%, off from last week’s average bank rate of 3.09%.

The narrowing of the spread between the five year CD rates and the other maturities roughly tracks the activity in the Treasury market. This past week the one year and two year Treasury rates moved just modestly while the five year and ten year Treasury rates dropped rather significantly. One year Treasuries were up one basis point, the two yea Treasury rate was lower by three basis points meanwhile the ten year dropped by 24 basis points.

To view a complete list of the best CD rates available across the country, view the CD rate tables by term including the best 6 month CD rates, best one year CD rates, best two year CD rates and best 5 year CD rates.

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