CD rates were down again this past week. The average bank CD rate for all CD terms declined to new lows. The one bright spot is the declines were small, some CD terms declined fractionally. Bond prices drove mortgage rates up considerablly this week, unfortunately CD rates didn’t follow the trend.

Five year certificate of deposit rates averaged 2.475 percent this week, down from last week’s average rate of 2.481 percent. AIG Bank is offering some of the highest CD rates for a five year CD, their rate is 3.46 percent right now.

Four year certificate of deposit rates averaged 2.235 percent this week, down from last week’s average rate of 2.243 percent. PenFed is offering some of the best CD rates for a four year CD, the rate is currently at 3.75 percent.

Three year certificate of deposit rates are averaging 2.028 percent this week, last week’s average was 2.039 percent.

Two year certificate of deposit rates averaged 1.775 percent this week, down from last week’s average of 1.787 percent. 18 month certificate of deposit rates averaged 1.547 percent, down from 1.560 percent. 12 month certificate of deposit rates averaged 1.409 percent this week, last week’s average was 1.424 percent.

Average rates for shorter term certificate of deposit rates also declined this past week. Six month certificate of deposit rates averaged 1.128 percent this week, down from last week’s average of 1.142 percent. Three month certificate of deposit rates averaged 0.823 percent, down from last week’s average rate of 0.836 percent.

Remember it is best to stick with shorter term CD rates for the foreseeable future, economists are saying we should be out of this recession by the end of 2009. When economic indicators point to a recovery interest rates will rise. Don’t lock into long term certificate of deposits at these low rates.