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

NEW YORK - RateWatch, a premier banking data and analytics service owned by TheStreet, Inc. (NASDAQ: TST), reported today that the 2 and 4 year CD averages each increased by one basis point as the Federal Reserve continued to keep the short-term federal funds rate at a range of zero to 0.25% since late 2008.

"Two- and four-year CD rates inched higher spurred by an aggressive European Central Bank, which cut interest rates Thursday and announced large scale bond purchases. Despite weak U.S. job numbers Friday, analysts are increasingly looking for the Federal Reserve to begin raising rates in the first half of 2015," said Dan Freed, Senior Writer for TheStreet.

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 0.56% 0.55%
3 year CD 0.75% 0.75%
4 year CD 0.94% 0.93%
5 year CD 1.15% 1.15%

In the Greater Houston Region area, the average 5-year CD rate sat at 1.01%, lower than the national average of 1.15%. Rates on the 5-year CD ranged from 0.15% on the low end to 2.15% at the high end, which can be found at Charles Schwab. The average 3-year CD rate in Greater Houston Region was 0.73% with a range of 0.05% to 1.4% found at Charles Schwab. And if you are on the market for a 1-year CD, take a look at City Bank, which currently offers a rate of 0.75% as compared to the Greater Houston Region average of 0.39%. 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 0.15% 0.2% Hanmi Bank
1 month CD 0.11% 0.35% Allegiance Bank Texas
3 month CD 0.16% 0.4% Allegiance Bank Texas
6 month CD 0.24% 0.501% Allegiance Bank Texas
1 year CD 0.39% 0.75% City Bank
2 year CD 0.56% 1.0% City Bank
3 year CD 0.73% 1.4% Charles Schwab
4 year CD 0.83% 1.8% Charles Schwab
5 year CD 1.01% 2.15% Charles Schwab

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 ($)
APY(%)
Hanmi Bank
713-779-3388
www.unitedcentralbank.com
B 5000 0.2
Prosperity Bank
936-372-9404
www.prosperitybankusa.com
B+ 2500 0.15
Green Bank, National Association
713-275-8370
www.greenbank.com
B 10000 0.15
City Bank
713-988-8305
www.citybankonline.com
C+ 1500 0.15
Community Trust Bank
713-463-0300
www.ctbonline.com
B 50 0.15
1 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Allegiance Bank Texas
281-894-3200
www.allegiancebanktexas.com
B 1000 0.35
City Bank
713-988-8305
www.citybankonline.com
C+ 1000 0.2
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 ($)
APY(%)
Allegiance Bank Texas
281-894-3200
www.allegiancebanktexas.com
B 1000 0.4
City Bank
713-988-8305
www.citybankonline.com
C+ 1000 0.35
PlainsCapital Bank
713-586-7400
www.plainscapital.com
A- 1000 0.25
Texas Capital Bank, National Association
832-308-7000
www.texascapitalbank.com
B 1000 0.2
Charles Schwab
713-229-0411
www.schwab.com
1000 0.2
6 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Allegiance Bank Texas
281-894-3200
www.allegiancebanktexas.com
B 1000 0.501
City Bank
713-988-8305
www.citybankonline.com
C+ 1000 0.5
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
Charles Schwab
713-229-0411
www.schwab.com
1000 0.35
1 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
City Bank
713-988-8305
www.citybankonline.com
C+ 1000 0.75
Allegiance Bank Texas
281-894-3200
www.allegiancebanktexas.com
B 1000 0.601
Charles Schwab
713-229-0411
www.schwab.com
1000 0.5
Cathay Bank
713-278-9599
www.cathaybank.com
B 2500 0.5
PlainsCapital Bank
713-586-7400
www.plainscapital.com
A- 1000 0.45
2 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
City Bank
713-988-8305
www.citybankonline.com
C+ 1000 1.0
Charles Schwab
713-229-0411
www.schwab.com
1000 1.0
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
Cathay Bank
713-278-9599
www.cathaybank.com
B 2500 0.7
3 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Charles Schwab
713-229-0411
www.schwab.com
1000 1.4
Allegiance Bank Texas
281-894-3200
www.allegiancebanktexas.com
B 1000 1.306
City Bank
713-988-8305
www.citybankonline.com
C+ 1000 1.25
Community Trust Bank
713-463-0300
www.ctbonline.com
B 500 1.05
Cathay Bank
713-278-9599
www.cathaybank.com
B 2500 0.9
4 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Charles Schwab
713-229-0411
www.schwab.com
1000 1.8
Allegiance Bank Texas
281-894-3200
www.allegiancebanktexas.com
B 1000 1.407
City Bank
713-988-8305
www.citybankonline.com
C+ 1000 1.25
Community Trust Bank
713-463-0300
www.ctbonline.com
B 500 1.25
Compass Bank
713-993-8590
www.bbvacompass.com
C+ 1 1.05
5 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Charles Schwab
713-229-0411
www.schwab.com
1000 2.15
Compass Bank
713-993-8590
www.bbvacompass.com
C+ 1 2.0
Allegiance Bank Texas
281-894-3200
www.allegiancebanktexas.com
B 1000 1.559
Community Trust Bank
713-463-0300
www.ctbonline.com
B 500 1.5
Independent Bank
713-789-6100
www.independent-bank.com
B+ 1000 1.4

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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