CD interest rates continue to plunge as banks remain awash with reserves and investors flock to the safety of U.S. Treasury bonds.  CD interest rates have suffered from a number of fronts including the biggest force coming from the Fed’s position in 2011 to drive bank rates down in an effort to help the housing markets and spur economic activity at the expense of fixed income investors and savers. 

The slightly better than expected jobs report on Friday boosted Treasury rates higher however, that increase was not absorbed in bank savings rates.  The best CD interest rates available nationwide descended lower again this week across all maturities measured in the weekly CD rates survey.  The CD rate index of the top ten best three month CD, six month CD, one year CD, two year CD and five year CD rates, dropped by 2.1 basis points.  The index now sits at 1.176 percent.  One basis point is equal to 1/100th of a percent.

The top ten highest three month CD rates experienced a one basis point rate reduction on the week.  The average rate for the best three month CD rates available nationally moved down to 0.527 percent from 0.537 percent in the prior week.  The best three month CD rate remains at Hudson City Bank which offers the three month certificate at 0.75 percent.  Virtual Bank and One West Bank market the second best three month CDs at 0.60 percent.  As low as these rates may appear, the three month Treasury rate on October 7th was 0.01 percent, that’s not a typo.   The national average CD rate, as posted by the FDIC, on a three month CD rate for October 3rd was just 0.15 percent.

Interest rates on six month CDs declined by a little over one basis point, placing the average rate for the top ten best six month CDs at 0.887 percent.  The highest rate for this term CD comes from Aurora Bank with a CD that yields just under 1.00 percent at 0.99 percent. CDs from Giant Bank and Ascencia Bank follow with interest rates at 0.95 percent.  Comparing these rates to Treasury rates and the national average CD rate for a six month term, the six month Treasury on October 7th was 0.04 percent while the national average rate was only 0.24 percent.

The best one year CD rate average was lower by not even a basis point.  The average rate for the top ten best one year CD rates closed the week at 1.104 percent, off of the previous week’s figure of 1.112 percent.  The top performing CD in the one year maturity comes from Doral Bank Direct which offers a one year CD rate at 1.15 percent.  AloStar Bank of Commerce’s one year CD and Aurora Bank’s one year CD rate of 1.12 percent are running a very close second.  The national average one year CD rate reported by the FDIC was 0.37 percent and the one year Treasury rate was just 0.11 percent.

Two year CD rates lost a little over one basis point this week.  The average interest rate for the highest two year CDs ended the week at 1.304 percent.  CNBBank Direct and Ultima Bank have CD rates that are the highest for this term at 1.35 percent.  Aurora Bank’s CD rate at 1.33 percent has been pushed to second position.  The national average rate is 0.58 percent and the comparable term Treasury rate is 0.30 percent.

The long term, five year CDs, continue to be the punching bag for bank CD investors.  The average rate for the best five year CDs declined by six basis points, chopping the average rate down to 2.056 percent.  The First Internet Bank CD with a five year term holds the best yield at 2.20 percent.  The Discover CD moves up to offer the next best five year rate at 2.15 percent.  A five year Treasury on Friday was yielding just 1.08 percent and the national average CD rate for a five year was only a hair better at 1.29 percent.

To find more information on the best CD rates by maturity 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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