Savings rates showed little movement last week while CD rates continued to fall. Longer-term CDs led the decline.

Savings Rates

Average rates dropped slightly from 1.32% APY to 1.31% APY. The top non-promotional rate remains East Boston Savings Bank at 1.55% APY. One month ago, the top rate was 2% APY. So, in four weeks the top rate you could get on a savings account has fallen significantly. For promotional rates, Everbank remains on top with their 3-month introductory bonus rate of 2.25% APY. After the three-month period, the rate drops down to 1.26% APY for a blended one year APY of 1.51% APY.

CD Rates

The average 1-year CD dropped slightly from 1.57% APY to 1.55% APY. First City Bank continues to hold the top spot with a 1.80% APY CD. First City is in bad financial shape and has been operating under a FDIC Cease and Desist Order since 10/09. CNB Bank moved into the second sport with a 1.65% APY CD.

The average 3-year CD rate dropped the most, from 2.42% to 2.37% APY. The top spot continues to be occupied by USAA Federal Savings Bank, which offers a 2.65% APY CD with a minimum deposit of $175,000. The next highest rate is Acacia Federal Savings at 2.50% APY and a $500 minimum deposit.

The average 5-year CD rate dropped from 3.12% APY to 3.07% APY. At this rate, the average will go below 3% in the next 3-4 weeks.

USAA continues to have the top rate at 3.31% APY. The second highest rate has dropped from 3.26% APY to 3.25% APY offered by Acacia Federal Savings Bank.

The spread between savings and 3-year CD rates dropped significatly last week and is now at 1.05, down from a high of 1.24 in March. The ratio between 1-year CDs and 5-year CDs has remained steady over the past month and appears to have topped off. What does that mean? Longer term rates are no longer holding their own and are dropping at a faster rate than short-term rates. All rates are continuing to move towards 0. If the Fed doesn't raise the Fed Fund Rate soon (which it is unlikely to do) we can expect to see 5-year CD rates significantly below 3%,

OneUnited Bank has a new deal waiting--a 2.40 percent four year CD.

Admittedly, this rate is just under the lowest on the BestCashCow four year CD lists, with Discover Bank offering 2.45 percent, but OneUnited is offering something extra. Open a new four year CD with twenty five thousand dollars or more, they'll throw in an extra hundred bucks after the first ninety days. The addition of this extra hundred dollars, essentially, is the same as adding .40 percent to the yield, and a 2.80 CD would land it in the top five, just under Hudson City at 2.85 percent.

Rates are subject to change daily, but OneUnited hasn't changed its rates since December of 2009. You can apply for this online at www.oneunited.com or hit a branch, and you've got until June 30th to open the account.

OneUnited is FDIC insured, but only has a two-star "problematic" rating from Bauer Financial.

Credit for this find goes to www.bankvibe.com.

First City Bank is currently offering a 1.25 percent APY six month CD.

This puts First City Bank on the top of the BestCashCow CD rate list, tied with Aurora Bank at 1.25% APY. The minimum to open a CD with First City Bank is a thousand dollars, and there are no fees except for early withdrawal.

First City Bank is FDIC insured, but is rated a lowest possible zero star with Bauer Financial, and is included in their Troubled and Problematic Report. Bauer describes it as "facing considerable challenges at this time".

You can get a city either at a First City Bank branch, or by going online to www.firstcitybank.com.

Credit for this find goes to bankaholic.com.