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 were unchanged during the week despite a sharp drop in oil prices and otherwise unremarkable economic data. The oil price drop is seen as mostly positive for the economy since it typically leads to a rise in spending on other items," 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 | 0.95% | 0.94% |
5 year CD | 1.17% | 1.16% |
In the Greater Memphis Region area, the average 5-year CD rate sat at 0.96%, lower than the national average of 1.17%. Rates on the 5-year CD ranged from 0.15% on the low end to 1.5% at the high end, which can be found at IBERIABANK. The average 3-year CD rate in Greater Memphis Region was 0.69% with a range of 0.12% to 0.95% found at Renasant Bank. And if you are on the market for a 1-year CD, take a look at First Citizens National Bank, which currently offers a rate of 0.45% as compared to the Greater Memphis Region average of 0.37%. Other top rate issuers can be found in the tables that follow.
GREATER MEMPHIS REGION AVERAGE RESULTS - $10K
Avg Rate This week | Highest Available Rate | Highest Available Rate Issuer | |
---|---|---|---|
Money Market | 0.17% | 0.25% | First Citizens National Bank |
1 month CD | 0.12% | 0.25% | First Citizens National Bank |
3 month CD | 0.17% | 0.25% | First Citizens National Bank |
6 month CD | 0.26% | 0.35% | First Citizens National Bank |
1 year CD | 0.37% | 0.45% | First Citizens National Bank |
2 year CD | 0.54% | 0.65% | First Citizens National Bank |
3 year CD | 0.69% | 0.95% | Renasant Bank |
4 year CD | 0.77% | 1.15% | IBERIABANK |
5 year CD | 0.96% | 1.5% | IBERIABANK |
TOP RATE ISSUERS - $10K
This is a list of issuers with top interest rates in the Greater Memphis Region area. The issuer's Financial Strength Rating is an independent, unbiased evaluation of quarterly regulatory statements. Institutions are assigned a letter grade of A-E with "A" representing the highest rating based on a review of many aspects of financial safety including capitalization, asset quality, profitability and liquidity. For more information, visit www.weissratings.com/help/what-our-ratings-mean.aspx. Information is believed to be accurate, but not guaranteed.
Money Market | Financial Strength Rating | Minimum to Earn Interest ($) | APY(%) |
---|---|---|---|
First Citizens National Bank 901-837-3385 www.firstcitizens-bank.com | A- | 7500 | 0.25 |
First State Bank 901-840-1900 www.first-state.net | A- | 10000 | 0.2 |
FirstBank 901-682-2250 www.firstbankonline.com | C+ | 2500 | 0.2 |
BankPlus 662-536-5621 www.bankplus.net | B | 1000 | 0.1 |
Southern Bancorp Bank 662-382-5916 www.banksouthern.com | B- | 5000 | 0.1 |
1 Month CD | Financial Strength Rating | Minimum to Earn Interest ($) | APY(%) |
First Citizens National Bank 901-837-3385 www.firstcitizens-bank.com | A- | 2500 | 0.25 |
Citizens National Bank of Meridian 662-890-2860 www.yourcnb.com | B | 2500 | 0.14 |
FirstBank 901-682-2250 www.firstbankonline.com | C+ | 500 | 0.1 |
Southern Bancorp Bank 662-382-5916 www.banksouthern.com | B- | 2500 | 0.1 |
Cadence Bank, National Association 901-312-4424 www.cadencebanking.com | C+ | 500 | 0.1 |
3 Month CD | Financial Strength Rating | Minimum to Earn Interest ($) | APY(%) |
First Citizens National Bank 901-837-3385 www.firstcitizens-bank.com | A- | 2500 | 0.25 |
FirstBank 901-682-2250 www.firstbankonline.com | C+ | 500 | 0.2 |
Citizens National Bank of Meridian 662-890-2860 www.yourcnb.com | B | 2500 | 0.18 |
Southern Bancorp Bank 662-382-5916 www.banksouthern.com | B- | 2500 | 0.15 |
Cadence Bank, National Association 901-312-4424 www.cadencebanking.com | C+ | 500 | 0.15 |
6 Month CD | Financial Strength Rating | Minimum to Earn Interest ($) | APY(%) |
First Citizens National Bank 901-837-3385 www.firstcitizens-bank.com | A- | 2500 | 0.35 |
Southern Bancorp Bank 662-382-5916 www.banksouthern.com | B- | 2500 | 0.3 |
First State Bank 901-840-1900 www.first-state.net | A- | 1000 | 0.3 |
FirstBank 901-682-2250 www.firstbankonline.com | C+ | 500 | 0.25 |
Renasant Bank 877-367-5371 www.renasantbank.com | B- | 1000 | 0.25 |
1 Year CD | Financial Strength Rating | Minimum to Earn Interest ($) | APY(%) |
First Citizens National Bank 901-837-3385 www.firstcitizens-bank.com | A- | 500 | 0.45 |
Renasant Bank 877-367-5371 www.renasantbank.com | B- | 1000 | 0.4 |
Southern Bancorp Bank 662-382-5916 www.banksouthern.com | B- | 500 | 0.35 |
First State Bank 901-840-1900 www.first-state.net | A- | 1000 | 0.35 |
FirstBank 901-682-2250 www.firstbankonline.com | C+ | 500 | 0.35 |
2 Year CD | Financial Strength Rating | Minimum to Earn Interest ($) | APY(%) |
First Citizens National Bank 901-837-3385 www.firstcitizens-bank.com | A- | 500 | 0.65 |
Renasant Bank 877-367-5371 www.renasantbank.com | B- | 1000 | 0.65 |
First State Bank 901-840-1900 www.first-state.net | A- | 1000 | 0.65 |
Cadence Bank, National Association 901-312-4424 www.cadencebanking.com | C+ | 500 | 0.65 |
Citizens National Bank of Meridian 662-890-2860 www.yourcnb.com | B | 2500 | 0.54 |
3 Year CD | Financial Strength Rating | Minimum to Earn Interest ($) | APY(%) |
Renasant Bank 877-367-5371 www.renasantbank.com | B- | 1000 | 0.95 |
First State Bank 901-840-1900 www.first-state.net | A- | 1000 | 0.85 |
First Citizens National Bank 901-837-3385 www.firstcitizens-bank.com | A- | 500 | 0.75 |
Cadence Bank, National Association 901-312-4424 www.cadencebanking.com | C+ | 500 | 0.75 |
IBERIABANK 901-757-7100 www.iberiabank.com | C+ | 1000 | 0.75 |
4 Year CD | Financial Strength Rating | Minimum to Earn Interest ($) | APY(%) |
IBERIABANK 901-757-7100 www.iberiabank.com | C+ | 1000 | 1.15 |
Renasant Bank 877-367-5371 www.renasantbank.com | B- | 1000 | 1.05 |
First State Bank 901-840-1900 www.first-state.net | A- | 1000 | 1.0 |
Citizens National Bank of Meridian 662-890-2860 www.yourcnb.com | B | 2500 | 0.94 |
Cadence Bank, National Association 901-312-4424 www.cadencebanking.com | C+ | 500 | 0.8 |
5 Year CD | Financial Strength Rating | Minimum to Earn Interest ($) | APY(%) |
IBERIABANK 901-757-7100 www.iberiabank.com | C+ | 1000 | 1.5 |
Renasant Bank 877-367-5371 www.renasantbank.com | B- | 1000 | 1.35 |
First State Bank 901-840-1900 www.first-state.net | A- | 1000 | 1.1 |
Cadence Bank, National Association 901-312-4424 www.cadencebanking.com | C+ | 500 | 1.1 |
First Citizens National Bank 901-837-3385 www.firstcitizens-bank.com | A- | 500 | 1.1 |
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.