Even as the stock market and Treasury markets gyrated wildly this past week, CD rates continued to move higher.  It was tumultuous market for most investment products including stocks, bonds, commodities, and many foreign markets.  The stock market volatility, the up-and-down movement of the market, brought on multiple 100 point plus up and down days.  Treasury rates started at 2.31 percent, dropped during the week to below 2.00 percent, and closed the week at 2.22 percent. 

Chaotic may be an understatement for the financial markets, with the exception of bank CDs.  The average rate on the nation’s top performing bank CDs held steady at or near the highest levels of the year for most maturities. 

The average CD rate available from the top performing CD accounts across an assortment of maturities ended the week at 1.159 percent.  The average CD rate is measured by the SelectCDrates.com CD rate index which surveys the top ten highest CD rates for three month term bank CDs, six month CDs, one year, two year, and five year CDs available nationally.

The stability found in the bank rates is not the big news of the week.  More noteworthy than the strength in the average rate is the widening spread between the top CD rates and the national average CD rate.  The most profound disparity in bank CD interest rates can be found on the longer term certificates.

The best five year CD rates have a current average yield of 2.222 percent.  This contrasts to the national average rate on five year CD accounts of just 0.78 percent.  The lowest of the top ten five year term certificates is yielding 2.05 percent and the top performer earns 2.35 percent.  A rate of return that also eclipses the rate found on the ten year Treasury bond, 2.22 percent

The best two year CD rates now have an average yield of 1.302 percent.  The spread among the top two year accounts has widened along with the spread against the national average rate.  The highest two year CD rate is 1.55 percent and the lowest among the top ten is 1.25 percent.  The national average rate for two year certificates is a measly 0.34 percent.

For one year certificates of deposit, the national average rate is 0.20 percent.  The highest one year CD has a yield that is six times the national rate.  The highest one year CD rate is 1.25 percent.  The average rate for the top ten one year term certificate accounts is 1.117 percent.

At six month maturities, the spread starts to narrow between the highest rates and the national average.  In absolute terms, the spread narrows simply because the yields overall are not that high for short term accounts.  But, the relative spread is also not nearly as wide due to the lack of upside movement in short term rates going into the fourth quarter.  Long term rates started to pop almost two months ago while competition among the leading rate producers on the shorter end of the curve has stayed quite.  The best six month rates are sitting at 0.747 percent while the national average is 0.12 percent. 

The data certainly shows that is worth shopping and comparing CD rates to obtain a return that is well above the average bank is offering.

Additional data regarding the top CD rates in the nation, listed by term, can be found at the following bank rate tables: 3 month CD rates, 6 month CD rates, 9 month CD rates, 1 year CD rates, 2 year CD rates, 4 year CD rates, 5 year CD rates.

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