Weekly CD Rates Review: Updated May 18, 2009

CD Rates continued to go down this past week, all average certificate of deposit rates are paying less than the week before. The declines were small since the average rate on all CD terms are so low these days.

The average CD rate for a 5-year CD is now under 2.50 percent at 2.49 percent. You can find 5-year CD rates well above the national average at some banks, AIG is offering a 5-year CD yield of 3.31 percent.

The average 4-year CD rates declined to 2.25 percent, down from 2.26 percent. As with 5-year CD rates, you can find rates well above the national average for 4-year CD rates, PenFed is currently offering a yield of 3.75 percent. The average rate of 3-year certificate of deposits is nearing 2 percent at 2.05 percent. Discover Bank is offering a yield of 3.20 percent for a 3-year certificate of deposit.

2-year certificate of deposit rates are averaging 1.80 percent, down from 1.82 percent. Tennessee Commerce Bank is offering a 2-year CD yield of 2.85 percent. 18-month CD rates are averaging 1.58 percent. 12-month CD rates are averaging 1.44 percent. AIG Bank is offering a 12-month CD yield of 2.41 percent.

Shorter term CD rate averages were also down, though we still recommend sticking with shorter term certificate of deposits since longer term rates are also very low and you don't want to lock into longer term CDs at these rates.   6-month CD rates are currently averaging 1.15 percent and 3-month CD rates are averaging .85 percent.