Average CD rates headed slightly lower again this week over last, continuing the year long trend down. There is hope for the future direction of CD rates since the economy is expanding again.

Preliminary numbers on third quarter Gross Domestic Product (GDP), a measure of goods and services, expanded by 3.5 percent. Fourth quarter GDP is also expected to expand around 2.5 percent to 3.00 percent.

When the Fed starts raising interest rates to keep inflation in check, deposit account rates like CD rates and savings account rates will start heading up as well. Hopefully this process should start happening sometime in the first half of 2010.

CD Rates – October 30, 2009

• The average 3 month certificate of deposit rate is at 0.587 percent this week, down from last week’s average rate of 0.592. Imperial Capital Bank is offering one of the best CD rates and yields for a 3 month certificate of deposit, the current APY is 1.33 percent.
• 6 month bank CD rates are averaging 0.859 percent this week, down from the prior week’s average rate of  0.863 percent this week. First Federal Bank of California is offering one of the highest CD rates at banks for a 6 month bank CD, the current APY of 1.75%.
• Average CD rates at banks for 12 month CDs are at 1.139% percent this week, down from last week’s average of 1.145 percent. Bank of Internet USA is offering one of the highest bank CD rates for a one year CD, their currently yield is 2.02 percent.
• 18 month CD rates are averaging 1.306 percent this week, down from last week’s average of 1.311.
• 24 month bank CD rates are averaging 1.610 percent, down from the prior week’s average CD rate of 1.613 percent.
• 36 month certificate of deposit rates are averaging 1.921 percent this week, down from the previous week’s rate of 1.923 percent.
• The average rate for a 48 month certificate of deposit is 2.149 percent, down from 2.153 percent.
• 60 month CD rates are averaging 2.418 percent this week, down from last week’s average of 2.422 percent.

Find the best bank CD rates in your area by searching our CD rate tables here: Best Bank CD Rates