SelectCDrates.com released their most recent survey of bank CD rates for the week ending August 21, 2009. This week’s survey of the best CD rates available nationally has indicated a possible bottom to the downward slide in bank rates.
While debate over the elusive economic recovery unfolds and the FDIC continues to close the doors of more banks, CD yields were surprisingly stable to upbeat.
The average yield on the one year term CD rates displayed a moderate increase for the week. The best one year term CD rates available nationally averaged 2.07%. This rate is an increase of three basis points or 3/100 of a percent from the prior week of 2.04%.
Yields on certificates of deposit with a two year term remained at a standstill. The best two year CD rates held firm at 2.36% to close the week.
The average of the best five year CD rates managed to turn out a slight gain. The average five year CD rate bumped up to 3.37% or a gain of one basis point from the prior week.
Bank CD rates with a six month term moved in the opposite direction. The best six month CD rates averaged 1.75% which is down by just one basis point from the previous week.
With the Fed making it clear that inflation is not an immediate threat nor do they expect to change the Fed Funds rate anytime soon, we should expect CD rates to hold steady for some time.
Standard fixed rate bank certificates of deposit offer guaranteed yields, flexible terms, and the safety of FDIC insurance. These attributes are particularly enticing in these topsy turvy markets. From the day a bank CD account is opened until the day it matures, the account holder knows exactly what return will be and when they will receive it.
SelectCDrates.com is recognized as a leading source for bank certificate of deposit rates.
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