Why are the rates for CD accounts different in every state?

Question

Is there a reason for the difference in amounts of CD account earnings by state?

Answer 1

Each bank sets their own rates. Some cities or states have higher or lower rates depending upon the level of competition of banks in each geographical area. Cities or states with less national banks and more local banks typically have higher rates.

Answer 2

Because the economies are different in each state.  Thus the demand for money, and the interest rates paid (on this money) are different in each state.  

Say the economy in the Maryland is growing, thus the demand in Maryland for money to loan out is also growing.  And to get this money, the banks have to pay higher rates.  

Maybe the economy is not that great in Idaho, then the banks don't have such a demand for money to loan out.  So they may pay a lower rate.  

I know nothing about the economies of these states.  I just chose them at random.