5-Year CD Rates in Greater Phoenix 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.

"CD rates remained unchanged across all maturities as the Federal Reserve announced the end of its bond buying program as expected Oct. 29. The statement from the Fed's policymakers was slightly more optimistic than its previous one, and surprise stimulus by the Bank of Japan ended at the end of last week drive stocks higher while boosting longer-term Treasury yields. Still, lower energy prices and continued sluggishness in Europe led to increased deflationary fears," said Dan Freed, Senior Staff Reporter 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% 0.56%
3 year CD 0.76% 0.76%
4 year CD 0.94% 0.94%
5 year CD 1.16% 1.16%

In the Greater Phoenix Region area, the average 5-year CD rate sat at 1.0%, lower than the national average of 1.16%. 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 Phoenix Region was 0.61% with a range of 0.05% to 1.2% found at Sonoran Bank. And if you are on the market for a 1-year CD, take a look at AmTrust Bank, which currently offers a rate of 1.05% as compared to the Greater Phoenix Region average of 0.32%. Other top rate issuers can be found in the tables that follow.

GREATER PHOENIX REGION AVERAGE RESULTS - $10K

Avg Rate This
week
Highest Available
Rate
Highest Available Rate Issuer
Money Market 0.09% 0.4% Sonoran Bank
1 month CD 0.09% 0.36% Beal Bank USA
3 month CD 0.12% 0.51% Beal Bank USA
6 month CD 0.18% 0.7% Beal Bank USA
1 year CD 0.32% 1.05% AmTrust Bank
2 year CD 0.47% 1.15% AmTrust Bank
3 year CD 0.61% 1.2% Sonoran Bank
4 year CD 0.78% 1.5% Sonoran Bank
5 year CD 1.0% 2.0% Compass Bank

TOP RATE ISSUERS - $10K

This is a list of issuers with top interest rates in the Greater Phoenix 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 ($)
APY(%)
Sonoran Bank
602-393-6950
www.ksstatebank.com
A- 10000 0.4
Beal Bank USA
602-714-3838
www.bealbank.com
B- 1000 0.2
Mutual of Omaha Bank
480-458-2080
www.mutualofomahabank.com
C+ 10000 0.15
Compass Bank
480-783-6820
www.bbvacompass.com
C+ 10000 0.15
Enterprise Bank & Trust
602-824-5700
www.enterprisebank.com
B+ 10000 0.15
1 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Beal Bank USA
602-714-3838
www.bealbank.com
B- 1000 0.36
Enterprise Bank & Trust
602-824-5700
www.enterprisebank.com
B+ 1000 0.2
Armed Forces Bank, National Association
623-535-9766
www.afbank.com
B- 500 0.15
Alliance Bank of Arizona
602-952-5400
www.alliancebankofarizona.com
B 1 0.12
Mutual of Omaha Bank
480-458-2080
www.mutualofomahabank.com
C+ 1000 0.1
3 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Beal Bank USA
602-714-3838
www.bealbank.com
B- 1000 0.51
Stearns Bank National Association
480-314-4200
www.stearnsbank.com
A 2500 0.3
Enterprise Bank & Trust
602-824-5700
www.enterprisebank.com
B+ 1000 0.2
Armed Forces Bank, National Association
623-535-9766
www.afbank.com
B- 500 0.2
Alliance Bank of Arizona
602-952-5400
www.alliancebankofarizona.com
B 1 0.15
6 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Beal Bank USA
602-714-3838
www.bealbank.com
B- 1000 0.7
Stearns Bank National Association
480-314-4200
www.stearnsbank.com
A 2500 0.4
Sonoran Bank
602-393-6950
www.ksstatebank.com
A- 500 0.4
MidFirst Bank
602-801-5000
www.midfirst.com
B 1000 0.3
Enterprise Bank & Trust
602-824-5700
www.enterprisebank.com
B+ 1000 0.25
1 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
AmTrust Bank
480-970-6500
www.mynycb.com
B 500 1.05
Beal Bank USA
602-714-3838
www.bealbank.com
B- 1000 1.01
Armed Forces Bank, National Association
623-535-9766
www.afbank.com
B- 500 0.6
Stearns Bank National Association
480-314-4200
www.stearnsbank.com
A 2500 0.55
Sonoran Bank
602-393-6950
www.ksstatebank.com
A- 500 0.55
2 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
AmTrust Bank
480-970-6500
www.mynycb.com
B 500 1.15
Beal Bank USA
602-714-3838
www.bealbank.com
B- 1000 1.01
Armed Forces Bank, National Association
623-535-9766
www.afbank.com
B- 500 0.9
Stearns Bank National Association
480-314-4200
www.stearnsbank.com
A 2500 0.85
Compass Bank
480-783-6820
www.bbvacompass.com
C+ 1 0.85
3 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Stearns Bank National Association
480-314-4200
www.stearnsbank.com
A 2500 1.2
Sonoran Bank
602-393-6950
www.ksstatebank.com
A- 500 1.2
Beal Bank USA
602-714-3838
www.bealbank.com
B- 1000 1.01
Armed Forces Bank, National Association
623-535-9766
www.afbank.com
B- 500 1.0
Washington Federal, National Association
602-468-2767
www.washingtonfederal.com
B 1000 1.0
4 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Sonoran Bank
602-393-6950
www.ksstatebank.com
A- 500 1.5
Washington Federal, National Association
602-468-2767
www.washingtonfederal.com
B 1000 1.5
Stearns Bank National Association
480-314-4200
www.stearnsbank.com
A 2500 1.4
MidFirst Bank
602-801-5000
www.midfirst.com
B 500 1.4
Armed Forces Bank, National Association
623-535-9766
www.afbank.com
B- 500 1.1
5 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Stearns Bank National Association
480-314-4200
www.stearnsbank.com
A 2500 2.0
Compass Bank
480-783-6820
www.bbvacompass.com
C+ 1 2.0
MidFirst Bank
602-801-5000
www.midfirst.com
B 500 1.9
Washington Federal, National Association
602-468-2767
www.washingtonfederal.com
B 1000 1.7
Sonoran Bank
602-393-6950
www.ksstatebank.com
A- 500 1.6

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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