The average for five year CD yields slipped again for the week ending July 3, 2009. The average for the best five year CD rates available nationally dropped five basis points or 5/100 of a percent to end the week at 3.60%.
The Federal Reserves message to the financial markets to keep interest rates low as long as possible is keeping a lid on any improvement in long term CD yields. After comments from the Fed regarding the outlook for prolonged low Fed Funds rates and a lack of concern for elevated inflation expectations bank rates continued to slide on the long end of the curve. With no imminent interest rate hikes coming from the FOMC investors will to have put up with painfully low yields on certificates of deposit for the near future.
The best five year CD rate now stands at 3.80% and is available from Acacia Federal Savings Bank, a subsidiary of Acacia Life Insurance Company. This week all ten financial institutions with the best five year CD rates offered CD rates at or above 3.50%.
The second best CD rate is at 3.65% and is offered by Tennessee Commerce Bank, One West Bank and State Bank of India. Three basis points below the rate offered by that trio is the CD rate of Intervest National Bank at 3.62%. Discover Bank has a five year CD rate that follows at 3.60%. A full nine basis points down from here is the five year CD product of Goldwater Bank that yields 3.51%. The top ten bank rates in the five year term ends at 3.50% which can be found at several banks including; Ally Bank, Dime Direct and First Trade Union Bank.
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