5-Year CD Rates in Greater Los Angeles 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 Los Angeles Region area, the average 5-year CD rate sat at 0.98%, lower than the national average of 1.17%. Rates on the 5-year CD ranged from 0.15% on the low end to 2.1% at the high end, which can be found at Luther Burbank Savings. The average 3-year CD rate in Greater Los Angeles Region was 0.69% with a range of 0.05% to 1.35% found at Luther Burbank Savings. And if you are on the market for a 1-year CD, take a look at Wilshire Bank, which currently offers a rate of 0.8% as compared to the Greater Los Angeles Region average of 0.39%. Other top rate issuers can be found in the tables that follow.

GREATER LOS ANGELES REGION AVERAGE RESULTS - $10K

Avg Rate This
week
Highest Available
Rate
Highest Available Rate Issuer
Money Market 0.15% 0.5% OneWest Bank, National Association
1 month CD 0.11% 0.2% Preferred Bank
3 month CD 0.16% 0.3% OneWest Bank, National Association
6 month CD 0.25% 0.6% Wilshire Bank
1 year CD 0.39% 0.8% Wilshire Bank
2 year CD 0.55% 1.0% OneWest Bank, National Association
3 year CD 0.69% 1.35% Luther Burbank Savings
4 year CD 0.82% 1.65% First Republic Bank
5 year CD 0.98% 2.1% Luther Burbank Savings

TOP RATE ISSUERS - $10K

This is a list of issuers with top interest rates in the Greater Los Angeles 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 ($)
APY(%)
OneWest Bank, National Association
626-535-4870
www.owb.com
A- 10000 0.5
Woori America Bank
323-730-1101
www.wooriamericabank.com
B- 2000 0.25
Wilshire Bank
213-427-1000
www.wilshirebank.com
B- 2500 0.25
Hanmi Bank
562-865-8822
www.unitedcentralbank.com
B 5000 0.2
Preferred Bank
213-891-1188
www.preferredbank.com
B 1 0.2
1 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Wilshire Bank
213-427-1000
www.wilshirebank.com
B- 1000 0.2
Preferred Bank
213-891-1188
www.preferredbank.com
B 1000 0.2
Torrey Pines Bank
213-362-5200
www.torreypinesbank.com
B 5000 0.15
Industrial and Commerical Bank of China (USA) NA
626-300-8888
www.icbc-us.com
D 2500 0.15
Banc of California, National Association
877-770-2262
www.bancofcal.com
B- 1 0.12
3 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Preferred Bank
213-891-1188
www.preferredbank.com
B 1000 0.3
OneWest Bank, National Association
626-535-4870
www.owb.com
A- 1000 0.3
Wilshire Bank
213-427-1000
www.wilshirebank.com
B- 1000 0.25
Woori America Bank
323-730-1101
www.wooriamericabank.com
B- 1000 0.25
Torrey Pines Bank
213-362-5200
www.torreypinesbank.com
B 5000 0.2
6 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Wilshire Bank
213-427-1000
www.wilshirebank.com
B- 1000 0.6
Woori America Bank
323-730-1101
www.wooriamericabank.com
B- 1000 0.5
OneWest Bank, National Association
626-535-4870
www.owb.com
A- 1000 0.45
Opus Bank
949-474-0722
www.opusbank.com
B 10000 0.45
Preferred Bank
213-891-1188
www.preferredbank.com
B 1000 0.4
1 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Wilshire Bank
213-427-1000
www.wilshirebank.com
B- 1000 0.8
Woori America Bank
323-730-1101
www.wooriamericabank.com
B- 1000 0.75
OneWest Bank, National Association
626-535-4870
www.owb.com
A- 1000 0.7
Preferred Bank
213-891-1188
www.preferredbank.com
B 1000 0.65
Opus Bank
949-474-0722
www.opusbank.com
B 10000 0.6
2 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Woori America Bank
323-730-1101
www.wooriamericabank.com
B- 1000 1.0
OneWest Bank, National Association
626-535-4870
www.owb.com
A- 1000 1.0
Luther Burbank Savings
818-333-2580
www.lutherbsavings.com
B+ 1000 1.0
First Republic Bank
213-239-8883
www.firstrepublic.com
B+ 10000 1.0
Wilshire Bank
213-427-1000
www.wilshirebank.com
B- 1000 0.95
3 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Luther Burbank Savings
818-333-2580
www.lutherbsavings.com
B+ 1000 1.35
Woori America Bank
323-730-1101
www.wooriamericabank.com
B- 1000 1.25
OneWest Bank, National Association
626-535-4870
www.owb.com
A- 1000 1.25
First Republic Bank
213-239-8883
www.firstrepublic.com
B+ 10000 1.25
Wilshire Bank
213-427-1000
www.wilshirebank.com
B- 1000 1.05
4 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
First Republic Bank
213-239-8883
www.firstrepublic.com
B+ 10000 1.65
Luther Burbank Savings
818-333-2580
www.lutherbsavings.com
B+ 1000 1.6
OneWest Bank, National Association
626-535-4870
www.owb.com
A- 1000 1.5
Bank of the West
949-786-7220
www.bankofthewest.com
B 10000 1.5
Umpqua Bank
747-233-3500
www.umpquabank.com
B- 10000 1.4
5 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Luther Burbank Savings
818-333-2580
www.lutherbsavings.com
B+ 1000 2.1
First Republic Bank
213-239-8883
www.firstrepublic.com
B+ 10000 2.05
Umpqua Bank
747-233-3500
www.umpquabank.com
B- 10000 1.75
Industrial and Commerical Bank of China (USA) NA
626-300-8888
www.icbc-us.com
D 2500 1.51
OneWest Bank, National Association
626-535-4870
www.owb.com
A- 1000 1.5

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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