5-Year CD Rates in Greater New York Region Higher 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 New York Region area, the average 5-year CD rate sat at 1.18%, higher than the national average of 1.17%. Rates on the 5-year CD ranged from 0.1% on the low end to 2.3% at the high end, which can be found at Charles Schwab. The average 3-year CD rate in Greater New York Region was 0.82% with a range of 0.05% to 1.7% found at iGObanking.com. And if you are on the market for a 1-year CD, take a look at New York Community Bank, which currently offers a rate of 1.05% as compared to the Greater New York Region average of 0.39%. Other top rate issuers can be found in the tables that follow.

GREATER NEW YORK REGION AVERAGE RESULTS - $10K

Avg Rate This
week
Highest Available
Rate
Highest Available Rate Issuer
Money Market 0.17% 0.85% Mercantil Commercebank, National Association
1 month CD 0.1% 0.25% First Choice Bank
3 month CD 0.15% 0.3% BBCN Bank
6 month CD 0.23% 1.01% Atlas Bank, a division of Kearny Federal Savings
1 year CD 0.39% 1.05% New York Community Bank
2 year CD 0.64% 1.4% iGObanking.com
3 year CD 0.82% 1.7% iGObanking.com
4 year CD 0.95% 1.95% Charles Schwab
5 year CD 1.18% 2.3% Charles Schwab

TOP RATE ISSUERS - $10K

This is a list of issuers with top interest rates in the Greater New York 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 ($)
APY(%)
Mercantil Commercebank, National Association
212-891-7777
www.mercantilcb.com
C 10000 0.85
Customers Bank
914-908-4529
www.customersbank.com
C+ 10000 0.65
Atlas Bank, a division of Kearny Federal Savings
718-768-4800
www.atlasbank.com
C- 10000 0.6
First Choice Bank
609-454-0336
www.firstchoice-bank.com
B- 10000 0.4
Emigrant Bank
212-850-4521
www.emigrant.com
C- 2500 0.4
1 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
First Choice Bank
609-454-0336
www.firstchoice-bank.com
B- 1000 0.25
Wilshire Bank
201-313-5400
www.wilshirebank.com
B- 1000 0.2
Columbia Bank
201-794-5840
www.columbiabankonline.com
C- 2500 0.2
East West Bank
212-966-3303
www.eastwestbank.com
B+ 10000 0.15
Garden State Community Bank
908-245-1240
www.mynycb.com
B 2500 0.15
3 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
BBCN Bank
201-242-7462
www.bbcnbank.com
C+ 1000 0.3
Emigrant Bank
212-850-4521
www.emigrant.com
C- 1000 0.3
Charles Schwab
800-435-4000
www.schwabbank.com
1000 0.3
First Choice Bank
609-454-0336
www.firstchoice-bank.com
B- 1000 0.25
Wilshire Bank
201-313-5400
www.wilshirebank.com
B- 1000 0.25
6 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Atlas Bank, a division of Kearny Federal Savings
718-768-4800
www.atlasbank.com
C- 2500 1.01
Doral Bank
212-329-3700
www.doralbankdirect.com
E+ 500 0.82
BBCN Bank
201-242-7462
www.bbcnbank.com
C+ 1000 0.6
Wilshire Bank
201-313-5400
www.wilshirebank.com
B- 1000 0.6
Emigrant Bank
212-850-4521
www.emigrant.com
C- 1000 0.5
1 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Roslyn Savings Bank
516-625-0000
www.mynycb.com
B 500 1.05
New York Community Bank
516-683-4100
www.mynycb.com
B 500 1.05
Richmond County Savings Bank
718-569-3080
www.mynycb.com
B 500 1.05
Queens County Savings Bank
718-357-5930
www.mynycb.com
B 500 1.05
Roosevelt Savings Bank
718-569-3140
www.mynycb.com
B 500 1.05
2 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
iGObanking.com
888-432-5890
www.igobanking.com
C+ 1000 1.4
Flushing Commercial Bank
718-512-2929
www.flushingbank.com
C+ 5000 1.3
Roslyn Savings Bank
516-625-0000
www.mynycb.com
B 500 1.15
New York Community Bank
516-683-4100
www.mynycb.com
B 500 1.15
Richmond County Savings Bank
718-569-3080
www.mynycb.com
B 500 1.15
3 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
iGObanking.com
888-432-5890
www.igobanking.com
C+ 1000 1.7
Flushing Commercial Bank
718-512-2929
www.flushingbank.com
C+ 5000 1.7
Charles Schwab
800-435-4000
www.schwabbank.com
1000 1.55
Boiling Springs Savings Bank
201-939-6600
www.bssbank.com
B- 1000 1.5
Oritani Savings Bank
201-664-5400
www.oritani.com
A- 1000 1.5
4 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Charles Schwab
800-435-4000
www.schwabbank.com
1000 1.95
Oritani Savings Bank
201-664-5400
www.oritani.com
A- 1000 1.75
Columbia Bank
201-794-5840
www.columbiabankonline.com
C- 500 1.75
Emigrant Bank
212-850-4521
www.emigrant.com
C- 1000 1.65
Dime Savings Bank of Williamsburgh
718-782-6200
www.dsbwdirect.com
B 500 1.6
5 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Charles Schwab
800-435-4000
www.schwabbank.com
1000 2.3
Northfield Bank
718-448-1000
www.enorthfield.com
B 2500 2.25
iGObanking.com
888-432-5890
www.igobanking.com
C+ 1000 2.05
Flushing Commercial Bank
718-512-2929
www.flushingbank.com
C+ 1000 2.05
Oritani Savings Bank
201-664-5400
www.oritani.com
A- 1000 2.0

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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