The Twist pushes CD interest rates lower.  After the Federal Reserve announcement on Thursday when the Fed discussed the Twist, short term and long term bank CD rates moved lower.  The Twist is term given to the FOMC program where the Fed sells short term bonds and buys long term bonds in an effort to push long term rates even lower than they already are in an effort to spur lending and investment. 

The Twist announcement was made on September 22nd and by the close of the next day, the best CD interest rates available nationally as measured by the CD rate index had fallen by more than three basis points to an average rate of 1.211 percent.  One basis point is equal to 1/100th of a percent. 

While the twist program is designed to impact long term rates, both short term and long term CD rates moved lower.  The best three month CD rates available nationally were squeezed by a little more than two basis points, closing the week with an average rate of 0.547 percent.  The best three month CD rate is a real stand out coming from Hudson City Savings Bank which still offers a three month CD with an interest rate of 0.75 percent.  The next best rate falls 15 basis points back at 0.60 percent.  Virtual Savings Bank’s CD and One West Bank’s CD both come with a 0.60 percent yield.

The top ten best six month CD rates lost an almost equal amount of yield, falling just over two basis points.  The average rate for the best six month CD rates came in at 0.902 percent after dipping to 0.927 percent in the prior week.  The highest six month CD rate is held in a three way tie.  Giant Bank, Aurora Bank and Ascencia Bank all share the top spot with six month CD rate of 1.00 percent.

One year CD rates gave up under two basis points over the week.  The average rate for the best one year CD rates was down by 1.7 basis points bringing the yield to 1.141 percent.   The best rates available in the two year term category are available at Sallie Mae Bank and CNBBank Direct which offer one year CD rates at 1.20 percent, unchanged from the prior week.  The next best one year yields are available at AloStar Bank and Doral Bank with two year certificates yielding 1.15 percent.  

The best two year CD rates followed the other rates and were cut back by a little less than two basis points.  The average yields on the highest two year CDs came down to 1.337 percent from 1.355 percent in the previous week.  The top two year yield comes from CNBBank Direct at 1.50 percent.  With the loss of Flagstar’s two year CD rate this week, the second best two year yield comes from three banks offering two year rates at 1.35 percent.  Aurora Bank, Giant Bank and Ultima Bank all market a two year CD that comes with an interest rate at 1.35 percent.

The long term, five year CDs, were crushed this week.  The average rate on the top ten best five year CD rates was driven lower by 7.7 basis points week over week.  The average yield on the top five year bank CDs ended the week at 2.126 percent.  The highest five year CD rate is now available at AmTrust Direct which promotes a five year rate at 2.25 percent.  Following AmTrust is the CD from First Internet Bank which delivers a five year rate at 2.20 percent.

To find more information on the best CD rates by maturity please see the following CD rate tables at 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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