While the economy stumbles along, certificates of deposit rates grew weaker yet again.  For the week ending August 19th, CD interest rates dropped across all maturities measured in the Selectcdrates.com bank rate survey.  The movement in CD interest rate reductions has become unstoppable.  The deterioration in rates among the top ten highest CD rates this week actually surpassed the rate reductions of the previous week. 

The Selectcdrates.com CD interest rate index, which covers the best 3 month CD rates through 5 year CD rates available nationally dipped by 4.5 basis points.  One basis point is equal to 1/100th of a percent.  The CD rate index ended the week at 1.260 percent after starting the week at 1.315 percent.

Three month CD rates this week did not hold up nearly as well as they did in the previous weeks that had seen similar significant rate reductions.  This week, the average rate on the best three month bank CDs was down by a full three basis points leaving the average yield at 0.573 percent. 

The bright spot among the three month CD rates is the certificate promoted from AloStar Bank. AloStar Bank markets a three month CD with a stunning 0.81 percent yield.  While rates are down for CD investors, it is worth noting that the rate on this bank CD is 40 times higher than the rate on a risk free 3 month Treasury rate.  Hudson City Savings Bank CD rate with a two year term continues to be the second best rate with a three month term at 0.75 percent.

Six month CD rates slipped by just a fraction this week.  The average rate on the top ten best six month CD rates was down by 1.6 basis points which put the average rate at 0.938 percent.  AloStar Bank continues to dominate the short term maturities.  AloStar Bank promotes a six month CD rate at 1.05 percent to offer the absolute highest CD rate nationally however, Aurora Bank is nipping at their backside with a six month CD rate at 1.04 percent.

The average rate on the top one year bank CDs was lower by the smallest of measurements when it comes to CD yields.  The average one year CD rate decreased by 1/1000th of a percent to 1.197 percent from 1.198 percent in the week earlier. 

The top two highest CD rates with a one year term are unchanged from the previous week.  The AloStar Bank one year CD has the highest rate at 1.27 percent and an E-Loan CD is just one basis point lower at 1.26 percent.  

The best two year CD rates were brought down by a smidgen under two basis points.  The average rate for the top ten two year CD rates ended the week at 1.392 percent.  CNBBank Direct CD rate is the best available with a yield of 1.50 percent.  Aurora Bank CD rate fir a two year maturity falls five basis points back at 1.45 percent.

After taking it on the chin in the previous week, the rate on the best five year CDs slipped only modestly.  The average rate for the top five year CDs was lessened by just over one basis point which brought the average rate down to 2.293 percent.  Urban Partnership Bank holds the best five year CD rate two weeks in a row.  The Urban Partnership Bank CD rate for the five year term CD remained at 2.42 percent.  The First Internet Bank CD rate with a five year maturity certificate runs a close second with a yield at 2.40 percent.

To find the best CD rates by maturity please see the CD rate tables at Selectcdrates.com labeled by maturity: 3 month CD rates, 6 month CD rates, 1 year CD rates, 2 year CD rates and 5 year CD rates.

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