5-Year CD Rates in Greater Baltimore 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 were unchanged as the stock and bond markets settled down a bit following the Dec. 17 Fed meeting, where U.S. central bank officials signaled they are in no hurry to raise interest rates," said Dan Freed, Senior Staff Reporter for TheStreet.com.

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% 0.95%
5 year CD 1.17% 1.17%

In the Greater Baltimore Region area, the average 5-year CD rate sat at 1.15%, lower than the national average of 1.17%. Rates on the 5-year CD ranged from 0.15% on the low end to 1.75% at the high end, which can be found at TD Bank, National Association. The average 3-year CD rate in Greater Baltimore Region was 0.61% with a range of 0.12% to 1.0% found at Essex Bank. And if you are on the market for a 1-year CD, take a look at Essex Bank, which currently offers a rate of 0.5% as compared to the Greater Baltimore Region average of 0.26%. Other top rate issuers can be found in the tables that follow.

GREATER BALTIMORE REGION AVERAGE RESULTS - $10K

Avg Rate This
week
Highest Available
Rate
Highest Available Rate Issuer
Money Market 0.14% 0.4% Santander Bank, National Association
1 month CD 0.05% 0.1% Capital One, National Association
3 month CD 0.08% 0.2% TD Bank, National Association
6 month CD 0.15% 0.25% Essex Bank
1 year CD 0.26% 0.5% Essex Bank
2 year CD 0.41% 0.6% Essex Bank
3 year CD 0.61% 1.0% Essex Bank
4 year CD 0.79% 1.45% Sandy Spring Bank
5 year CD 1.15% 1.75% TD Bank, National Association

TOP RATE ISSUERS - $10K

This is a list of issuers with top interest rates in the Greater Baltimore 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 ($)
APY(%)
Santander Bank, National Association
410-638-0082
www.santanderbank.com
C+ 10000 0.4
Northwest Savings Bank
410-242-1234
www.northwestsavingsbank.com
B 10000 0.2
TD Bank, National Association
410-836-7053
www.tdbank.com
C 10000 0.15
Essex Bank
410-574-3303
www.essexbank.com
C+ 5000 0.15
PNC Bank, National Association
410-838-3050
www.pnc.com
C 10000 0.1
1 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Capital One, National Association
410-468-3140
www.capitalone.com
C 1000 0.1
Northwest Savings Bank
410-242-1234
www.northwestsavingsbank.com
B 500 0.05
PNC Bank, National Association
410-838-3050
www.pnc.com
C 1000 0.05
Columbia Bank
410-872-9165
www.thecolumbiabank.com
B- 500 0.05
First-Citizens Bank & Trust Company
410-571-2790
www.firstcitizens.com
B- 10000 0.05
3 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
TD Bank, National Association
410-836-7053
www.tdbank.com
C 250 0.2
Capital One, National Association
410-468-3140
www.capitalone.com
C 1000 0.1
Old Line Bank
410-987-1515
www.oldlinebank.com
B- 500 0.1
PNC Bank, National Association
410-838-3050
www.pnc.com
C 10000 0.06
Northwest Savings Bank
410-242-1234
www.northwestsavingsbank.com
B 2500 0.05
6 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Essex Bank
410-574-3303
www.essexbank.com
C+ 500 0.25
TD Bank, National Association
410-836-7053
www.tdbank.com
C 250 0.15
Capital One, National Association
410-468-3140
www.capitalone.com
C 5000 0.1
Old Line Bank
410-987-1515
www.oldlinebank.com
B- 500 0.1
Northwest Savings Bank
410-242-1234
www.northwestsavingsbank.com
B 500 0.1
1 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Essex Bank
410-574-3303
www.essexbank.com
C+ 500 0.5
Sandy Spring Bank
301-774-6400
www.sandyspringbank.com
B 1000 0.25
TD Bank, National Association
410-836-7053
www.tdbank.com
C 250 0.2
Old Line Bank
410-987-1515
www.oldlinebank.com
B- 500 0.2
Northwest Savings Bank
410-242-1234
www.northwestsavingsbank.com
B 500 0.2
2 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Essex Bank
410-574-3303
www.essexbank.com
C+ 500 0.6
Sandy Spring Bank
301-774-6400
www.sandyspringbank.com
B 1000 0.55
First National Bank of Pennsylvania
410-836-7100
www.fnb-online.com
C+ 500 0.45
Old Line Bank
410-987-1515
www.oldlinebank.com
B- 500 0.4
Northwest Savings Bank
410-242-1234
www.northwestsavingsbank.com
B 500 0.3
3 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Essex Bank
410-574-3303
www.essexbank.com
C+ 500 1.0
Sandy Spring Bank
301-774-6400
www.sandyspringbank.com
B 1000 1.0
First National Bank of Pennsylvania
410-836-7100
www.fnb-online.com
C+ 500 0.75
Old Line Bank
410-987-1515
www.oldlinebank.com
B- 500 0.5
Columbia Bank
410-872-9165
www.thecolumbiabank.com
B- 500 0.5
4 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Sandy Spring Bank
301-774-6400
www.sandyspringbank.com
B 1000 1.45
Columbia Bank
410-872-9165
www.thecolumbiabank.com
B- 500 1.35
First National Bank of Pennsylvania
410-836-7100
www.fnb-online.com
C+ 500 1.0
Susquehanna Bank
410-876-8880
www.susquehanna.net
B- 500 0.65
Northwest Savings Bank
410-242-1234
www.northwestsavingsbank.com
B 500 0.6
5 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Columbia Bank
410-872-9165
www.thecolumbiabank.com
B- 500 1.75
TD Bank, National Association
410-836-7053
www.tdbank.com
C 250 1.75
Sandy Spring Bank
301-774-6400
www.sandyspringbank.com
B 1000 1.65
Essex Bank
410-574-3303
www.essexbank.com
C+ 500 1.55
Old Line Bank
410-987-1515
www.oldlinebank.com
B- 500 1.2

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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