5-Year CD Rates in Greater Richmond Region Lower 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 Richmond Region area, the average 5-year CD rate sat at 0.99%, lower than the national average of 1.15%. Rates on the 5-year CD ranged from 0.13% on the low end to 1.85% at the high end, which can be found at Gateway Bank & Trust Company. The average 3-year CD rate in Greater Richmond Region was 0.61% with a range of 0.1% to 1.15% found at Fulton Bank, National Association. And if you are on the market for a 1-year CD, take a look at Gateway Bank & Trust Company, which currently offers a rate of 0.45% as compared to the Greater Richmond Region average of 0.23%. Other top rate issuers can be found in the tables that follow.

GREATER RICHMOND REGION AVERAGE RESULTS - $10K

Avg Rate This
week
Highest Available
Rate
Highest Available Rate Issuer
Money Market 0.13% 0.3% Franklin Federal Savings Bank
1 month CD 0.06% 0.1% Citizens & Farmers Bank
3 month CD 0.07% 0.15% Middleburg Bank
6 month CD 0.12% 0.25% Franklin Federal Savings Bank
1 year CD 0.23% 0.45% Gateway Bank & Trust Company
2 year CD 0.38% 0.65% Middleburg Bank
3 year CD 0.61% 1.15% Fulton Bank, National Association
4 year CD 0.72% 1.5% Fulton Bank, National Association
5 year CD 0.99% 1.85% Gateway Bank & Trust Company

TOP RATE ISSUERS - $10K

This is a list of issuers with top interest rates in the Greater Richmond 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 ($)
APY(%)
Franklin Federal Savings Bank
804-967-7024
www.franklinfederal.com
B 10000 0.3
Middleburg Bank
877-369-5200
www.middleburgbank.com
C+ 2500 0.2
Essex Bank
804-556-6722
www.essexbank.com
C+ 5000 0.2
EVB
804-559-9000
www.bankevb.com
D+ 10000 0.15
Gateway Bank & Trust Company
804-320-1397
www.gatewaybankandtrust.com
C- 1000 0.1
1 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
EVB
804-559-9000
www.bankevb.com
D+ 1000 0.1
Citizens & Farmers Bank
804-843-7001
www.cffc.com
B- 500 0.1
Capital One, National Association
804-273-1144
www.capitalone.com
C+ 1000 0.1
First Community Bank
804-748-4204
www.fcbresource.com
B- 1000 0.088
Gateway Bank & Trust Company
804-320-1397
www.gatewaybankandtrust.com
C- 500 0.05
3 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Middleburg Bank
877-369-5200
www.middleburgbank.com
C+ 500 0.15
EVB
804-559-9000
www.bankevb.com
D+ 1000 0.1
Citizens & Farmers Bank
804-843-7001
www.cffc.com
B- 500 0.1
Capital One, National Association
804-273-1144
www.capitalone.com
C+ 1000 0.1
First Community Bank
804-748-4204
www.fcbresource.com
B- 1000 0.1
6 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Franklin Federal Savings Bank
804-967-7024
www.franklinfederal.com
B 500 0.25
Essex Bank
804-556-6722
www.essexbank.com
C+ 500 0.25
Middleburg Bank
877-369-5200
www.middleburgbank.com
C+ 500 0.2
Citizens & Farmers Bank
804-843-7001
www.cffc.com
B- 500 0.15
First Community Bank
804-748-4204
www.fcbresource.com
B- 1000 0.12
1 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Gateway Bank & Trust Company
804-320-1397
www.gatewaybankandtrust.com
C- 500 0.45
Franklin Federal Savings Bank
804-967-7024
www.franklinfederal.com
B 500 0.4
Essex Bank
804-556-6722
www.essexbank.com
C+ 500 0.4
Middleburg Bank
877-369-5200
www.middleburgbank.com
C+ 500 0.4
Citizens & Farmers Bank
804-843-7001
www.cffc.com
B- 500 0.25
2 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Middleburg Bank
877-369-5200
www.middleburgbank.com
C+ 500 0.65
Gateway Bank & Trust Company
804-320-1397
www.gatewaybankandtrust.com
C- 500 0.6
Franklin Federal Savings Bank
804-967-7024
www.franklinfederal.com
B 500 0.6
Essex Bank
804-556-6722
www.essexbank.com
C+ 500 0.6
Fulton Bank, National Association
804-565-4400
www.fultonbank.com
B- 1000 0.45
3 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Fulton Bank, National Association
804-565-4400
www.fultonbank.com
B- 1000 1.15
Gateway Bank & Trust Company
804-320-1397
www.gatewaybankandtrust.com
C- 500 1.06
Franklin Federal Savings Bank
804-967-7024
www.franklinfederal.com
B 500 1.0
Essex Bank
804-556-6722
www.essexbank.com
C+ 500 1.0
Middleburg Bank
877-369-5200
www.middleburgbank.com
C+ 500 0.9
4 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Fulton Bank, National Association
804-565-4400
www.fultonbank.com
B- 1000 1.5
Gateway Bank & Trust Company
804-320-1397
www.gatewaybankandtrust.com
C- 500 1.45
Franklin Federal Savings Bank
804-967-7024
www.franklinfederal.com
B 500 1.41
Middleburg Bank
877-369-5200
www.middleburgbank.com
C+ 500 1.0
First Community Bank
804-748-4204
www.fcbresource.com
B- 1000 0.681
5 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Gateway Bank & Trust Company
804-320-1397
www.gatewaybankandtrust.com
C- 500 1.85
Franklin Federal Savings Bank
804-967-7024
www.franklinfederal.com
B 500 1.81
Fulton Bank, National Association
804-565-4400
www.fultonbank.com
B- 1000 1.75
Essex Bank
804-556-6722
www.essexbank.com
C+ 500 1.56
Citizens & Farmers Bank
804-843-7001
www.cffc.com
B- 500 1.3

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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