The Best CD Interest Rates May 9, 2011

The best CD rates available nationally ticked up a notch for the week ending May 6, 2011. The average rate for the highest CD rates covering all CD terms surveyed by Selectcdrates.com from three months to five years was 1.383 percent or .014 percent higher than the previous week. The increase in the average was due to rate increases on the short term CDs. Long term CD rates, the two year and five year terms, actually declined very slightly for the week.

The increase in the best short term CD rates was pushed higher by the bank rates marketed by Nexity Bank. Nexity Bank offers the best CD rates in both the three month term as well as the six month term. Nexity Bank was closed by the State of Alabama Banking Department and the Federal Deposit Insurance Corporation on April 15, 2011 but has remained open for business under the control of AloStar Bank of Commerce.

The bank is operated by AloStar Bank of Commerce which still uses the Nexity Bank name and web site. Nexity Bank is an Internet only bank with one branch that offers banking services and products nationwide. The three month CD rate marketed by Nexity / AloStar is at 0.81 percent while the six month CD rate is at 1.12 percent.

For longer term CDs, Doral Bank continues to dominate the top rates for one year term CDs. Doral Bank is an FDIC insured bank headquartered in Puerto Rico that offers competitive CD rates through its online vision, Doral Bank Direct. The current one year CD rate promoted by the bank is at 1.40 percent with a minimum deposit of $1,000.00

MetLife Bank remains on top of the two year CD rate category. A MetLife two year CD with a $25,000.00 deposit has a CD interest rate of 1.55 percent. In addition to leading the best two year CD rates, MetLife also has the second best one year CD rate at 1.30 percent.

Five year CD rates were little changed this week. While the long term CD rates did lose some ground, for most of the year this was the one CD term that had lost the least amount of yield over time. The highest CD rate with a five year term comes from Tennessee Commerce Bank with a rate of 2.65 percent. One West Bank falls behind the rate leader with five year CD rate at 2.55 percent.

For more bank rates covering the best three month CD rates, six month CD rates, one year CD rates, two year CD rates and five year CD rates see the following pages 3 month CD rates, 6 month CD rates, 1 year CD rates, 2 year CD rates or 5 year CD rates.

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