Average CD rates showed minor downward movement over the past week.

The average 1-year CD rate remained flat at 1.83% APY. The top rate remains at 2% APY and is offered by First City Bank. First City is offering a top rate but be sure to stay under FDIC insurance limits - it is rated as 0 stars according to Bauer Financial for its safety and soundness.

The average 3-year CD rate dropped by 3 basis points from 2.65% APY to 2.62% APY. USAA Federal Savings Bank continued to have the top rate with a 2.81% APY 3-year CD. The minimum deposit for that rate is $175,000. While you need a military connection to quality for their loan and insurance products, you do not need one to take advantage of USAA deposit products. In the banking world, USAA is highly regarded for its banking products and services.

The average 5-year CD dropped 2 basis points from 3.34% APY to 3.31% APY. BankUnited continues to have the top rate at 3.50%. Everbank continues to offer the next highest rate at 3.47% APY.

The chart below shows that CD rates have largely stabilized although there is still a slight drift down in short term rates and savings accounts.

As we noted last week, the spread between short term and longer term deposits remains near record highs, although it dropped very slightly this week (Spread Between Savings Rates and CD Rates Hits Record High).

The elevated ratio means it may be worth taking a look at a longer-term CD, especially one that doesn't have an onerous early-withdrawal penalty. You can now earn 1.5 percentage points more by opening a 5 year CD versus a 1-year CD. If interest rates stay low for the next couple of years, as is possible, then perhaps this elevated spread makes opening the account worth it.

Dime Bank is offering a 2.50% APY 15-Month IRA CD. That's very competitive for a CD of that term. The best 1-year non-IRA CD according to the BestCashCow rate tables is 2% APY and the best 18-month CD is 2.20% APY.

The account is available nationally and can be opened via phone or by mail. Unfortunately, there is no online application.

Because this is an IRA CD, the maximum that can be deposited is $5,000 per year, $6,000 if you are 50 and over. The minimum deposit is $500.

The Dime Savings Bank of Williamsburgh, the formal name of the bank, is a wholly owned subsidiary of Dime Community Bancshares, Inc. (NASDAQ: DCOM), a publicly-owned company. The company has 23 branches mainly located in Brooklyn and Queens and over 400 employees.

If you have spent any time in college at all, you probably recognize the name “Sallie Mae” as a leader in student loans. But the name is starting to enter into the online banking industry. Sallie Mae is now offering CDs offering high interest rates as well as high yield savings accounts for customers. The accounts are FDIC insured and, according to Sallie Mae, the rates they are offering are about five times greater than the national average.

One of the nice things about the new online savings accounts that Sallie Mae is offering is that there are no minimum balances and no monthly fees. Many banks are offering these features lately so it is only fitting that Sallie Mae does the same thing in order to compete with other online banking companies. Here are some other features you can expect from Sallie Mae’s venture into the online banking industry:

• Compounded daily interest
• 1.35% APY
• Matching up to 10% on Upromise earnings

If you choose to get a CD account online with Sallie Mae, here are some of the features you can expect from that:
• FDIC Insured
• No monthly fees
• Undisclosed minimum deposit (contact Sallie Mae for more details)
• 1.50% APY on 12-month CDs
• 2.20% APY on 36-month CDs
• 3.00% APY on 60-month CDs

If you can get past getting the chills and shivers from the memories of dealing with Sallie Mae over your student loans, the company’s online ventures sound decent. Check it out by opening an account today!