5-Year CD Rates in Greater Boston 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.

"National averages of CD rates generally were unchanged as investors await further insight into the Federal Reserve's thinking on interest rates at an annual Aug. 21 gathering in Wyoming hosted by the Federal Reserve Bank of Kansas City," reported Antoine Gara, reporter for TheStreet. "The Fed, while it continues to reduce its monthly bond purchases in the face of a strengthening U.S. economy, continues to see significant underutilization in the labor market, indicating rates won't change for a considerable time after the end of its economic stimulus program."

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 Boston Region area, the average 5-year CD rate sat at 1.33%, higher than the national average of 1.15%. Rates on the 5-year CD ranged from 0.1% on the low end to 2.02% at the high end, which can be found at Hingham Institution for Savings. The average 3-year CD rate in Greater Boston Region was 0.89% with a range of 0.1% to 1.4% found at Northern Bank & Trust Company. And if you are on the market for a 1-year CD, take a look at Salem Five Direct, which currently offers a rate of 1.0% as compared to the Greater Boston Region average of 0.42%. Other top rate issuers can be found in the tables that follow.

GREATER BOSTON REGION AVERAGE RESULTS - $10K

Avg Rate This
week
Highest Available
Rate
Highest Available Rate Issuer
Money Market 0.15% 1.0% Salem Five Direct
1 month CD 0.1% 0.2% Bristol County Savings Bank
3 month CD 0.17% 0.5% Institution for Savings In Newburyport
6 month CD 0.25% 0.5% Institution for Savings In Newburyport
1 year CD 0.42% 1.0% Salem Five Direct
2 year CD 0.68% 1.25% Salem Five Direct
3 year CD 0.89% 1.4% Northern Bank & Trust Company
4 year CD 1.08% 2.0% Institution for Savings In Newburyport
5 year CD 1.33% 2.02% Hingham Institution for Savings

TOP RATE ISSUERS - $10K

This is a list of issuers with top interest rates in the Greater Boston 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 ($)
APY(%)
Salem Five Direct
800-850-5000
www.salemfivedirect.com
B 1 1.0
Santander Bank, National Association
603-328-3049
www.santanderbank.com
C+ 10000 0.4
Institution for Savings In Newburyport
978-462-3106
www.institutionforsavings.com
B 1000 0.25
Needham Bank
781-444-2100
www.needhambank.com
A- 2500 0.25
Cambridge Trust Company
617-876-2790
www.cambridgetrust.com
B+ 2500 0.2
1 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Bristol County Savings Bank
508-528-2666
www.bristolcountysavings.com
B- 1000 0.2
Century Bank & Trust Company
617-629-0929
www.centurybank.com
C+ 1 0.1
Enterprise Bank & Trust Company
978-459-9000
www.enterprisebanking.com
C+ 2500 0.1
Cambridge Trust Company
617-876-2790
www.cambridgetrust.com
B+ 1000 0.05
Commerce Bank & Trust Company
617-778-0500
www.bankatcommerce.com
B- 1000 0.05
3 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Institution for Savings In Newburyport
978-462-3106
www.institutionforsavings.com
B 1 0.5
Bristol County Savings Bank
508-528-2666
www.bristolcountysavings.com
B- 5000 0.25
Century Bank & Trust Company
617-629-0929
www.centurybank.com
C+ 1 0.25
NBT Bank, National Association
603-334-1280
www.nbtbank.com
B- 1000 0.25
Needham Bank
781-444-2100
www.needhambank.com
A- 2500 0.25
6 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Institution for Savings In Newburyport
978-462-3106
www.institutionforsavings.com
B 1 0.5
Century Bank & Trust Company
617-629-0929
www.centurybank.com
C+ 1 0.35
Needham Bank
781-444-2100
www.needhambank.com
A- 2500 0.35
Middlesex Savings Bank
508-653-0300
www.middlesexbank.com
B 10 0.35
East Boston Savings Bank
617-567-1500
www.ebsb.com
D+ 2500 0.35
1 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Salem Five Direct
800-850-5000
www.salemfivedirect.com
B 10000 1.0
Institution for Savings In Newburyport
978-462-3106
www.institutionforsavings.com
B 1 0.75
Needham Bank
781-444-2100
www.needhambank.com
A- 1000 0.75
Hingham Institution for Savings
781-749-2200
www.hinghamsavings.com
B+ 500 0.6
Northern Bank & Trust Company
781-937-5423
www.nbtc.com
B 500 0.6
2 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Salem Five Direct
800-850-5000
www.salemfivedirect.com
B 10000 1.25
Institution for Savings In Newburyport
978-462-3106
www.institutionforsavings.com
B 1 1.0
Needham Bank
781-444-2100
www.needhambank.com
A- 1000 1.0
Blue Hills Bank
617-361-6900
www.bluehillsbank.com
C 10 0.9
Cape Cod Five Cents Savings Bank
508-295-5554
www.capecodfive.com
C+ 1000 0.9
3 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Northern Bank & Trust Company
781-937-5423
www.nbtc.com
B 500 1.4
Hingham Institution for Savings
781-749-2200
www.hinghamsavings.com
B+ 500 1.26
Needham Bank
781-444-2100
www.needhambank.com
A- 1000 1.25
Blue Hills Bank
617-361-6900
www.bluehillsbank.com
C 10 1.25
Cape Cod Five Cents Savings Bank
508-295-5554
www.capecodfive.com
C+ 1000 1.15
4 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Institution for Savings In Newburyport
978-462-3106
www.institutionforsavings.com
B 1 2.0
Blue Hills Bank
617-361-6900
www.bluehillsbank.com
C 10 1.65
Hingham Institution for Savings
781-749-2200
www.hinghamsavings.com
B+ 500 1.61
Northern Bank & Trust Company
781-937-5423
www.nbtc.com
B 500 1.5
Needham Bank
781-444-2100
www.needhambank.com
A- 1000 1.5
5 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Hingham Institution for Savings
781-749-2200
www.hinghamsavings.com
B+ 500 2.02
Institution for Savings In Newburyport
978-462-3106
www.institutionforsavings.com
B 1 2.0
Blue Hills Bank
617-361-6900
www.bluehillsbank.com
C 10 2.0
Salem Five Direct
800-850-5000
www.salemfivedirect.com
B 10000 2.0
Northern Bank & Trust Company
781-937-5423
www.nbtc.com
B 500 1.85

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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