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

RateWatch, a premier banking data and analytics service owned by TheStreet, Inc. (NASDAQ: TST) reported today that national averages this week for 5-year CD rates slightly rose while all other durations remained unchanged as the Federal Reserve continued to keep the short-term federal funds rate at a range of zero to 0.25% since late 2008.

"National averages of CD rates showed virtually no change in the latest averages following one of the quietest economic weeks of the year," reported Joe Deaux, TheStreet's Economics Analyst. "Most savers are waiting for the Federal Reserve's policy-making meeting in two weeks to see if there's any fundamental shift in interest rate policy. Until then, investors can expect little activity in changing 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% 0.55%
3 year CD 0.75% 0.75%
4 year CD 0.93% 0.93%
5 year CD 1.15% 1.14%

In the Greater San Jose Region area, the average 5-year CD rate sat at 0.84%, lower than the national average of 1.15%. 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 San Jose Region was 0.51% with a range of 0.05% to 1.4% found at First Republic Bank. And if you are on the market for a 1-year CD, take a look at Hanmi Bank, which currently offers a rate of 0.8% as compared to the Greater San Jose Region average of 0.25%. Other top rate issuers can be found in the tables that follow.

GREATER SAN JOSE REGION AVERAGE RESULTS - $10K

Avg Rate This
week
Highest Available
Rate
Highest Available Rate Issuer
Money Market 0.08% 0.4% Hanmi Bank
1 month CD 0.06% 0.15% Torrey Pines Bank
3 month CD 0.1% 0.4% Hanmi Bank
6 month CD 0.16% 0.7% Hanmi Bank
1 year CD 0.25% 0.8% Hanmi Bank
2 year CD 0.38% 1.0% Hanmi Bank
3 year CD 0.51% 1.4% First Republic Bank
4 year CD 0.67% 1.9% First Republic Bank
5 year CD 0.84% 2.0% Compass Bank

TOP RATE ISSUERS - $10K





This is a list of issuers with top interest rates in the Greater San Jose 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 ($)
APY(%)
Hanmi Bank
408-260-3400
www.hanmi.com
B 10000 0.4
Cathay Bank
408-262-0280
www.cathaybank.com
B 10000 0.15
Far East National Bank
408-342-8000
www.fenb-us.com
B 10000 0.15
Luther Burbank Savings
650-688-7410
www.lutherbsavings.com
B 10000 0.15
Compass Bank
408-341-8700
www.bbvacompass.com
C+ 10000 0.15
1 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Torrey Pines Bank
650-469-1700
www.torreypinesbank.com
B 5000 0.15
Hanmi Bank
408-260-3400
www.hanmi.com
B 1000 0.1
Far East National Bank
408-342-8000
www.fenb-us.com
B 10000 0.1
Compass Bank
408-341-8700
www.bbvacompass.com
C+ 1 0.1
East West Bank
408-279-0668
www.eastwestbank.com
B+ 10000 0.1
3 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Hanmi Bank
408-260-3400
www.hanmi.com
B 1000 0.4
BBCN Bank
408-557-2000
www.bbcnbank.com
C+ 1000 0.3
Torrey Pines Bank
650-469-1700
www.torreypinesbank.com
B 5000 0.2
Luther Burbank Savings
650-688-7410
www.lutherbsavings.com
B 1000 0.2
Far East National Bank
408-342-8000
www.fenb-us.com
B 10000 0.15
6 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Hanmi Bank
408-260-3400
www.hanmi.com
B 1000 0.7
BBCN Bank
408-557-2000
www.bbcnbank.com
C+ 1000 0.6
Cathay Bank
408-262-0280
www.cathaybank.com
B 2500 0.35
Far East National Bank
408-342-8000
www.fenb-us.com
B 10000 0.3
CTBC Bank
408-873-3288
www.ctbcbankusa.com
C+ 1500 0.3
1 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Hanmi Bank
408-260-3400
www.hanmi.com
B 1000 0.8
BBCN Bank
408-557-2000
www.bbcnbank.com
C+ 1000 0.8
Cathay Bank
408-262-0280
www.cathaybank.com
B 2500 0.5
First Republic Bank
408-999-0242
www.firstrepublic.com
B+ 10000 0.5
Far East National Bank
408-342-8000
www.fenb-us.com
B 10000 0.45
2 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Hanmi Bank
408-260-3400
www.hanmi.com
B 1000 1.0
BBCN Bank
408-557-2000
www.bbcnbank.com
C+ 1000 1.0
First Republic Bank
408-999-0242
www.firstrepublic.com
B+ 10000 1.0
Compass Bank
408-341-8700
www.bbvacompass.com
C+ 1 0.85
Cathay Bank
408-262-0280
www.cathaybank.com
B 2500 0.7
3 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
First Republic Bank
408-999-0242
www.firstrepublic.com
B+ 10000 1.4
BBCN Bank
408-557-2000
www.bbcnbank.com
C+ 1000 1.1
Hanmi Bank
408-260-3400
www.hanmi.com
B 1000 1.05
Bank of the West
408-947-5005
www.bankofthewest.com
B 10000 1.0
Cathay Bank
408-262-0280
www.cathaybank.com
B 2500 0.9
4 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
First Republic Bank
408-999-0242
www.firstrepublic.com
B+ 10000 1.9
Bank of the West
408-947-5005
www.bankofthewest.com
B 10000 1.5
Umpqua Bank
408-755-4800
www.umpquabank.com
B- 10000 1.41
Compass Bank
408-341-8700
www.bbvacompass.com
C+ 1 1.05
East West Bank
408-279-0668
www.eastwestbank.com
B+ 10000 0.95
5 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
First Republic Bank
408-999-0242
www.firstrepublic.com
B+ 10000 2.0
Compass Bank
408-341-8700
www.bbvacompass.com
C+ 1 2.0
Umpqua Bank
408-755-4800
www.umpquabank.com
B- 10000 1.76
Bank of the West
408-947-5005
www.bankofthewest.com
B 10000 1.5
CTBC Bank
408-873-3288
www.ctbcbankusa.com
C+ 1500 1.11

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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