One Year CD Rates for June 5, 2009 from SelectCDrates.com

June 7, 2009 - PRLog -- One year CD rates accelerated their descent for the week of June 5, 2009.  The average for the top ten highest CD rates available nationally ended the week at 2.45% down six basis points or 6/100 of a percent for the week.  In the past 30 days, the one year CD rate has fallen by 16 basis points.

The highest one year CD rate comes from Corus Bank with an interest rate of 2.63%.  Corus Bank reduced its rate five basis points for the week while the previous category leader, Ally Bank, has reduced their one year CD rate from 2.80% to 2.49% to drop down to fourth position.  The next best one year CD rate belongs to Hanmi Bank with a rate of 2.53%, this rate is unchanged from the prior week.  Wilshire State Bank’s one year CD rate is one basis point lower at 2.52%.  The spread between the highest and lowest one year CD rate is 28 basis points, a far tighter range than previous weeks.

As more troubled banks are reigned in by the FDIC and the banking environment improves the competition to lure in depositors may be fading.  For the past year funds have flowed into the banks but as the stock market is now rising and Treasury rates increasing its hard to see how these low CD rates will remain.  Surely rollovers of existing CD that are maturing only to find lower current CD rates will search for the best overall market return and either move out of CDs or stay at the lowest term possible waiting for better rates.

The spread between the average of the best six month CD rates and one year CD rates has fallen to 38 basis points.  Last week the difference between these two different term CDs was 46 basis points and at the start of May it was at 47 basis points.  Reaching for longer term CD rates is losing some of its appeal with narrower spread in the terms for national rates.  State and regional CD rates are holding up slightly better in some markets making it essential that the CD rate shopper keep their eye on more than just the national bank rates.

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