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TheStreet Open House

5-Year CD Rates in Greater Houston Region Lower Than National Average

RateWatch, a premier banking data and analytics service owned by TheStreet, Inc. (NASDAQ: TST) reported today national averages this week for 2-year CD rates dropped and 4-year CD rates gained, while all other durations remained unchanged as the Federal Reserve has continued to keep the short-term federal funds rate at a range of zero to 0.25% since late 2008.

"Major U.S. stock markets tumbled last week, but the rate environment remains on track at the moment. Details from the Fed's last meeting showed that members believed their economic forecast overstated the pace of the rise in rates," reported Joe Deaux, TheStreet's Economics Analyst. "Despite this update, savers can remain confident that the U.S. is headed to a rising rate environment, which eventually will boost CD rates."

NATIONAL AVERAGE RESULTS - $10K

Avg Rate This week Avg Rate Last week
Money Market 0.15% 0.15%
1 month CD 0.11% 0.11%
3 month CD 0.15% 0.15%
6 month CD 0.23% 0.23%
1 year CD 0.36% 0.36%
2 year CD 0.55% 0.56%
3 year CD 0.75% 0.75%
4 year CD 0.93% 0.92%
5 year CD 1.14% 1.14%

In the Greater Houston Region area, the average 5-year CD rate sat at 0.99%, lower than the national average of 1.14%. Rates on the 5-year CD ranged from 0.15% on the low end to 2.0% at the high end, which can be found at Compass Bank. The average 3-year CD rate in Greater Houston Region was 0.71% with a range of 0.05% to 1.306% found at Independence Bank, National Association. And if you are on the market for a 1-year CD, take a look at Allegiance Bank Texas, which currently offers a rate of 0.601% as compared to the Greater Houston Region average of 0.4%. Other top rate issuers can be found in the tables that follow.

GREATER HOUSTON REGION AVERAGE RESULTS - $10K

Avg Rate This
week
Highest Available
Rate
Highest Available Rate Issuer
Money Market 0.16% 0.65% Green Bank, National Association
1 month CD 0.1% 0.35% Allegiance Bank Texas
3 month CD 0.15% 0.4% Allegiance Bank Texas
6 month CD 0.24% 0.501% Allegiance Bank Texas
1 year CD 0.4% 0.601% Allegiance Bank Texas
2 year CD 0.55% 0.903% Independence Bank, National Association
3 year CD 0.71% 1.306% Independence Bank, National Association
4 year CD 0.83% 1.407% Independence Bank, National Association
5 year CD 0.99% 2.0% Compass Bank

TOP RATE ISSUERS - $10K





This is a list of issuers with top interest rates in the Greater Houston Region area. The issuer's Financial Strength Rating is an independent, unbiased evaluation of quarterly regulatory statements. Institutions are assigned a letter grade of A-E with "A" representing the highest rating based on a review of many aspects of financial safety including capitalization, asset quality, profitability and liquidity. For more information, visit www.weissratings.com/help/what-our-ratings-mean.aspx. Information is believed to be accurate, but not guaranteed.
Money Market Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Green Bank, National Association
713-275-8370
www.greenbank.com
B- 1 0.65
United Central Bank
713-779-3388
www.ucbtx.com
D- 5000 0.2
Prosperity Bank
936-372-9230
www.prosperitybanktx.com
B+ 2500 0.15
Community Trust Bank
713-463-0300
www.ctbonline.com
B 50 0.15
Mutual of Omaha Bank
713-634-7300
www.mutualofomahabank.com
C+ 10000 0.15
1 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Independence Bank, National Association
832-615-6800
www.independencebank.com
B- 1000 0.35
Allegiance Bank Texas
281-894-3200
www.allegiancebanktexas.com
B- 1000 0.35
Community Trust Bank
713-463-0300
www.ctbonline.com
B 500 0.15
Green Bank, National Association
713-275-8370
www.greenbank.com
B- 1000 0.15
MidSouth Bank, National Association
409-769-0265
www.midsouthbank.com
B 1000 0.12
3 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Independence Bank, National Association
832-615-6800
www.independencebank.com
B- 1000 0.4
Allegiance Bank Texas
281-894-3200
www.allegiancebanktexas.com
B- 1000 0.4
PlainsCapital Bank
713-586-7400
www.plainscapital.com
A- 1000 0.25
Texas Capital Bank, National Association
832-308-7000
www.texascapitalbank.com
B- 1000 0.2
Community Trust Bank
713-463-0300
www.ctbonline.com
B 500 0.15
6 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Independence Bank, National Association
832-615-6800
www.independencebank.com
B- 1000 0.501
Allegiance Bank Texas
281-894-3200
www.allegiancebanktexas.com
B- 1000 0.501
Capital One 360
866-402-3921
www.capitalone.com
C+ 1 0.4
PlainsCapital Bank
713-586-7400
www.plainscapital.com
A- 1000 0.35
Cathay Bank
713-278-9599
www.cathaybank.com
B 2500 0.35
1 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Independence Bank, National Association
832-615-6800
www.independencebank.com
B- 1000 0.601
Allegiance Bank Texas
281-894-3200
www.allegiancebanktexas.com
B- 1000 0.601
Mutual of Omaha Bank
713-634-7300
www.mutualofomahabank.com
C+ 1000 0.55
Cathay Bank
713-278-9599
www.cathaybank.com
B 2500 0.5
PlainsCapital Bank
713-586-7400
www.plainscapital.com
A- 1000 0.45
2 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Independence Bank, National Association
832-615-6800
www.independencebank.com
B- 1000 0.903
Allegiance Bank Texas
281-894-3200
www.allegiancebanktexas.com
B- 1000 0.903
Compass Bank
713-993-8590
www.bbvacompass.com
C 1 0.85
United Central Bank
713-779-3388
www.ucbtx.com
D- 1000 0.65
Cathay Bank
713-278-9599
www.cathaybank.com
B 2500 0.6
3 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Independence Bank, National Association
832-615-6800
www.independencebank.com
B- 1000 1.306
Allegiance Bank Texas
281-894-3200
www.allegiancebanktexas.com
B- 1000 1.306
Charles Schwab
713-229-0411
www.schwab.com
1000 1.05
Compass Bank
713-993-8590
www.bbvacompass.com
C 1 0.85
Cathay Bank
713-278-9599
www.cathaybank.com
B 2500 0.8
4 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Independence Bank, National Association
832-615-6800
www.independencebank.com
B- 1000 1.407
Allegiance Bank Texas
281-894-3200
www.allegiancebanktexas.com
B- 1000 1.407
Charles Schwab
713-229-0411
www.schwab.com
1000 1.4
Compass Bank
713-993-8590
www.bbvacompass.com
C 1 1.05
East West Bank
713-771-2828
www.eastwestbank.com
B+ 1000 1.05
5 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Compass Bank
713-993-8590
www.bbvacompass.com
C 1 2.0
Charles Schwab
713-229-0411
www.schwab.com
1000 1.9
Independence Bank, National Association
832-615-6800
www.independencebank.com
B- 1000 1.559
Allegiance Bank Texas
281-894-3200
www.allegiancebanktexas.com
B- 1000 1.559
Cadence Bank, National Association
713-960-5009
www.cadencebank.com
C+ 1000 1.2

Data is surveyed weekly with averages calculated each Monday afternoon from RateWatch's unbiased national interest rate survey of over 96,000 financial institution locations across the United States.

More About CDs:

CDs, or certificate of deposits, are bank-issued promissory notes wherein an investor deposits money for a set amount of time and, provided the money remains untouched, receives interest on the total sum when the investment matures.

While the money can't be accessed during that time (without incurring penalties), the advantage of a CD over a regular savings deposit is the higher rate of interest. Typically, a CD can be taken out on as few as three-month terms but can range to up to five years; generally, the longer the timeframe the higher rate of interest.

CD Laddering:

To provide further financial security, a CD laddering strategy offers conservative investors the opportunity to stagger their capital across numerous deposits set to expire at different intervals. Not only does this hedge against variable rate fluctuations by offering a guaranteed return at a locked-in interest rate, it also increases liquidity given that one CD will mature at predictable and established intervals.

Using an example of a five-year ladder strategy, an investor would divide his or her money amongst one-, two-, three-, four-, and five-year CDs. Once the one-year deposit matures, he or she will reinvest the money into a five-year CD, and will do so every subsequent year upon each CD's maturation. In this way, the investor has a CD that matures each year and thus, steady income from the interest on the maturing investments.

Nevertheless, investors must keep in mind that the onus of developing a ladder strategy is on the investor, not the bank or financial institution. In developing a strategy, map out each rung of the ladder, determining how long you want to invest for, the kind of return you are targeting and the length of time you can tolerate not having access to the principal and interest.

About RateWatch

For over 20 years, RateWatch has been the premier provider of competitive interest rate and product information to financial institutions across the United States. Consistently providing top quality, highly relevant data RateWatch maintains the largest database in the industry with deposit, loan, and fee information monitoring over 96,000 locations. Rate surveys, product comparisons, financial strength reporting, local/regional/national averages, fee reporting, specialty reports and more are available. To learn more about RateWatch, visit www.rate-watch.com. RateWatch is a division of TheStreet, Inc.

National Average is calculated using one unique rate per institution. Averages and Top Rate Issuers are based on Banks, Savings & Loans, Brokers and Internet Banks with assets greater than $1 Billion.

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