5-Year CD Rates in Greater Philadelphia Region Higher Than National Average

NEW YORK – RateWatch, a premier banking data and analytics service owned by TheStreet, Inc. (NASDAQ: TST), reported today that national averages for CD rates of all durations this week 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.

"Savers remain in limbo because the Federal Reserve has repeated that it won’t lift the federal funds rate anytime soon, but a growing number of economists are arguing that the central bank will have to increase interest rates sooner than many market participants anticipate," reported Joe Deaux, TheStreet’s Economics Analyst. "For now, savers can expect few changes in average national CD rates, but they also shouldn’t be shocked if that shifts by the end of 2014."

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% 1.15%

In the Greater Philadelphia Region area, the average 5-year CD rate sat at 1.21%, higher than the national average of 1.15%. Rates on the 5-year CD ranged from 0.1% on the low end to 2.25% at the high end, which can be found at Barclays Bank Delaware. The average 3-year CD rate in Greater Philadelphia Region was 0.76% with a range of 0.1% to 1.4% found at Columbia Bank. And if you are on the market for a 1-year CD, take a look at East River Bank, which currently offers a rate of 1.05% as compared to the Greater Philadelphia Region average of 0.39%. Other top rate issuers can be found in the tables that follow.

GREATER PHILADELPHIA REGION AVERAGE RESULTS - $10K

Avg Rate This
week
Highest Available
Rate
Highest Available Rate Issuer
Money Market 0.16% 0.65% Customer Bank
1 month CD 0.11% 0.35% First Choice Bank
3 month CD 0.14% 0.35% Barclays Bank Delaware
6 month CD 0.22% 0.55% Barclays Bank Delaware
1 year CD 0.39% 1.05% East River Bank
2 year CD 0.59% 1.25% Columbia Bank
3 year CD 0.76% 1.4% Columbia Bank
4 year CD 0.97% 1.75% Columbia Bank
5 year CD 1.21% 2.25% Barclays Bank Delaware

TOP RATE ISSUERS - $10K

This is a list of issuers with top interest rates in the Greater Philadelphia 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 ($)
APY(%)
Customer Bank
610-251-7000
www.customersbank.com
C+ 10000 0.65
Customers Bank
610-933-2000
www.customersbank.com
C+ 10000 0.65
First Choice Bank
267-464-7000
www.firstchoice-bank.com
B 10000 0.5
Woori America Bank
215-782-1100
www.wooriamericabank.com
B 2000 0.25
Hudson City Savings Bank
856-428-3020
www.hcsbonline.com
C+ 2500 0.2
1 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
First Choice Bank
267-464-7000
www.firstchoice-bank.com
B 1000 0.35
Columbia Bank
856-772-9300
www.columbiabankonline.com
C- 2500 0.2
Armed Forces Bank, National Association
609-723-0707
www.afbank.com
C+ 500 0.15
Fulton Bank of New Jersey
856-845-0700
www.fultonbanknj.com
C+ 500 0.1
Sun National Bank
609-654-7600
www.sunnationalbank.com
D- 500 0.05
3 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
First Choice Bank
267-464-7000
www.firstchoice-bank.com
B 1000 0.35
Barclays Bank Delaware
888-710-8756
www.banking.barclaysus.com
C+ 1 0.35
Customer Bank
610-251-7000
www.customersbank.com
C+ 500 0.25
Customers Bank
610-933-2000
www.customersbank.com
C+ 500 0.25
Woori America Bank
215-782-1100
www.wooriamericabank.com
B 1000 0.25
6 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Barclays Bank Delaware
888-710-8756
www.banking.barclaysus.com
C+ 1 0.55
Woori America Bank
215-782-1100
www.wooriamericabank.com
B 1000 0.5
First Choice Bank
267-464-7000
www.firstchoice-bank.com
B 1000 0.4
Capital One 360
302-255-3750
www.capitalone360.com
C+ 1 0.4
Customer Bank
610-251-7000
www.customersbank.com
C+ 500 0.35
1 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
East River Bank
215-923-4860
www.eastriverbank.com
B- 10000 1.05
First Choice Bank
267-464-7000
www.firstchoice-bank.com
B 1000 1.0
Barclays Bank Delaware
888-710-8756
www.banking.barclaysus.com
C+ 1 0.8
Woori America Bank
215-782-1100
www.wooriamericabank.com
B 1000 0.75
Customer Bank
610-251-7000
www.customersbank.com
C+ 500 0.7
2 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
East River Bank
215-923-4860
www.eastriverbank.com
B- 10000 1.25
Columbia Bank
856-772-9300
www.columbiabankonline.com
C- 500 1.25
Barclays Bank Delaware
888-710-8756
www.banking.barclaysus.com
C+ 1 1.15
Hudson City Savings Bank
856-428-3020
www.hcsbonline.com
C+ 500 1.15
First Choice Bank
267-464-7000
www.firstchoice-bank.com
B 1000 1.0
3 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Columbia Bank
856-772-9300
www.columbiabankonline.com
C- 500 1.4
Barclays Bank Delaware
888-710-8756
www.banking.barclaysus.com
C+ 1 1.35
Woori America Bank
215-782-1100
www.wooriamericabank.com
B 1000 1.25
Hudson City Savings Bank
856-428-3020
www.hcsbonline.com
C+ 500 1.2
First Choice Bank
267-464-7000
www.firstchoice-bank.com
B 1000 1.2
4 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Columbia Bank
856-772-9300
www.columbiabankonline.com
C- 500 1.75
Barclays Bank Delaware
888-710-8756
www.banking.barclaysus.com
C+ 1 1.7
Fulton Bank, National Association
215-322-5400
www.fultonbank.com
B- 1000 1.5
Customer Bank
610-251-7000
www.customersbank.com
C+ 500 1.5
Customers Bank
610-933-2000
www.customersbank.com
C+ 500 1.5
5 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Barclays Bank Delaware
888-710-8756
www.banking.barclaysus.com
C+ 1 2.25
Columbia Bank
856-772-9300
www.columbiabankonline.com
C- 500 1.85
Fulton Bank, National Association
215-322-5400
www.fultonbank.com
B- 1000 1.75
Customer Bank
610-251-7000
www.customersbank.com
C+ 500 1.75
Customers Bank
610-933-2000
www.customersbank.com
C+ 500 1.75

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 are based on banks, savings & loans, brokers and Internet banks with assets greater than $1 billion.

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