CD interest rates took a pretty big fall this past week.  Economic uncertainty combined with government debt problems in the U.S. and in Europe is the biggest dynamic influencing the direction of interest rates.  Based on the most recent economic figures and Fed statements, a slow economy looks to be in the forecast for some time to come.  Don’t look for rising rates anytime soon.

The average CD rate across all terms measured by, three month CD rates to five year CD rates, fell by 3.5 basis points.  The index ended the week on September 2nd at 1.245 percent after holding steady in the prior week at 1.279 percent.

The short term, three month CD rates were the only term to show a gain for the week.  The average rate for the top ten three month CD rates gained 1.3 basis points, moving from 0.603 percent to 0.616 percent.

The Goldwater Bank three month CD rate was the driving force pushing the average higher.  Goldwater Bank came out swinging this week with a three month CD at 0.78 percent which is the highest rate in this term.  The AloStar Bank CD follows at 0.76 percent and just one basis point behind that rate are the CDs from Virtual Bank and Hudson City Savings that offer three month CDs with an interest rate at 0.75 percent.

The average yield for the top six month CDs dropped by a small fraction over the week.  The rate for the top ten highest six month CD rates closed the week at 0.943 percent, down from 0.946 percent in the previous week.  The best six month CD rate comes from AloStar Bank with an interest rate of 1.05 percent.  Aurora Bank CDs with a six month term run three basis points lower at 1.02 percent and Virtual Bank holds the third highest rate with a six month CD rate of 1.01 percent.

The rate on the ten highest one year CD rates shed just over two basis points this past week.  The average yield for the one year CD rates stepped down to 1.162 percent from 1.186 percent in the prior week.  The best one year CD rate is offered by two banks.  Sallie Mae Bank and CNBBank Direct offer one year CDs that currently yield 1.20 percent.  AloStar Bank has fallen back with the second best rate at 1.18 percent.

Two year certificate yields also gave back slightly more than two basis points this week.  The average rate for the top ten highest two year bank CDs declined to 1.365 percent, off of last week’s figure of 1.389 percent.  CNBBank Direct continues to offer the highest rate at 1.50 percent.  The next best two year rate runs ten basis points back.  Flagstar Banka and Aurora Bank both market two year CDs with rates at 1.40 percent, the second highest nationally available two year CD.

Five year CD yields got wacked this week.  The average rate for the top ten best five year CDs was cut by four basis points leaving the average yield on the long term certificates at 2.229 percent.  The top five year CD comes from Urban Partnership Bank with an interest rate of 2.42 percent.  The top rate is now eight basis points above the second highest five year CD offered by First Internet Bank at 2.34 percent.

To find the best CD rates by maturity please see the CD rate tables at labeled by term: 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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