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 St. Louis Region area, the average 5-year CD rate sat at 1.16%, lower than the national average of 1.17%. 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 Associated Bank, National Association. The average 3-year CD rate in Greater St. Louis Region was 0.71% with a range of 0.12% to 1.36% found at TIAA-CREF Trust Company, FSB. And if you are on the market for a 1-year CD, take a look at TIAA-CREF Trust Company, FSB, which currently offers a rate of 0.94% as compared to the Greater St. Louis Region average of 0.31%. Other top rate issuers can be found in the tables that follow.
GREATER ST. LOUIS REGION AVERAGE RESULTS - $10K
Avg Rate This week | Highest Available Rate | Highest Available Rate Issuer | |
---|---|---|---|
Money Market | 0.13% | 0.8% | TIAA-CREF Trust Company, FSB |
1 month CD | 0.1% | 0.5% | Great Southern Bank |
3 month CD | 0.13% | 0.5% | Great Southern Bank |
6 month CD | 0.19% | 0.6% | TIAA-CREF Trust Company, FSB |
1 year CD | 0.31% | 0.94% | TIAA-CREF Trust Company, FSB |
2 year CD | 0.49% | 1.08% | TIAA-CREF Trust Company, FSB |
3 year CD | 0.71% | 1.36% | TIAA-CREF Trust Company, FSB |
4 year CD | 0.92% | 1.4% | TIAA-CREF Trust Company, FSB |
5 year CD | 1.16% | 2.0% | Associated Bank, National Association |
TOP RATE ISSUERS - $10K
This is a list of issuers with top interest rates in the Greater St. Louis Region area. The issuer's Financial Strength Rating is an independent, unbiased evaluation of quarterly regulatory statements. Institutions are assigned a letter grade of A-E with "A" representing the highest rating based on a review of many aspects of financial safety including capitalization, asset quality, profitability and liquidity. For more information, visit www.weissratings.com/help/what-our-ratings-mean.aspx. Information is believed to be accurate, but not guaranteed.
Money Market | Financial Strength Rating | Minimum to Earn Interest ($) | APY(%) |
---|---|---|---|
TIAA-CREF Trust Company, FSB 314-244-5000 www.tiaa-cref.org | C- | 10000 | 0.8 |
Carrollton Bank 618-498-2107 www.carrolltonbanking.com | B | 10000 | 0.27 |
United Community Bank 618-585-3591 www.ucbbank.com | B+ | 10000 | 0.2 |
Midland States Bank 636-519-8844 www.midlandstatesbank.com | B | 10000 | 0.16 |
Simmons First National Bank 314-854-4510 www.simmonsfirst.com | C+ | 10000 | 0.15 |
1 Month CD | Financial Strength Rating | Minimum to Earn Interest ($) | APY(%) |
Great Southern Bank 636-928-2265 www.greatsouthernbank.com | B | 250 | 0.5 |
Enterprise Bank & Trust 314-725-5500 www.enterprisebank.com | B+ | 1000 | 0.2 |
Academy Bank 314-965-2400 www.academybankmw.com | B- | 500 | 0.15 |
First Bank 618-498-2151 www.firstbanks.com | C+ | 1000 | 0.1 |
UMB Bank, National Association 314-612-8173 www.umb.com | C+ | 500 | 0.1 |
3 Month CD | Financial Strength Rating | Minimum to Earn Interest ($) | APY(%) |
Great Southern Bank 636-928-2265 www.greatsouthernbank.com | B | 250 | 0.5 |
Enterprise Bank & Trust 314-725-5500 www.enterprisebank.com | B+ | 1000 | 0.2 |
Academy Bank 314-965-2400 www.academybankmw.com | B- | 500 | 0.2 |
Midland States Bank 636-519-8844 www.midlandstatesbank.com | B | 500 | 0.15 |
Pulaski Bank 314-878-2210 www.pulaskibank.com | C | 2500 | 0.15 |
6 Month CD | Financial Strength Rating | Minimum to Earn Interest ($) | APY(%) |
TIAA-CREF Trust Company, FSB 314-244-5000 www.tiaa-cref.org | C- | 1000 | 0.6 |
Great Southern Bank 636-928-2265 www.greatsouthernbank.com | B | 250 | 0.3 |
Bank of Edwardsville 618-656-0057 www.4thebank.com | B- | 2500 | 0.3 |
Enterprise Bank & Trust 314-725-5500 www.enterprisebank.com | B+ | 1000 | 0.25 |
Academy Bank 314-965-2400 www.academybankmw.com | B- | 500 | 0.25 |
1 Year CD | Financial Strength Rating | Minimum to Earn Interest ($) | APY(%) |
TIAA-CREF Trust Company, FSB 314-244-5000 www.tiaa-cref.org | C- | 1000 | 0.94 |
Academy Bank 314-965-2400 www.academybankmw.com | B- | 500 | 0.6 |
Enterprise Bank & Trust 314-725-5500 www.enterprisebank.com | B+ | 1000 | 0.45 |
Midland States Bank 636-519-8844 www.midlandstatesbank.com | B | 500 | 0.45 |
Great Southern Bank 636-928-2265 www.greatsouthernbank.com | B | 250 | 0.35 |
2 Year CD | Financial Strength Rating | Minimum to Earn Interest ($) | APY(%) |
TIAA-CREF Trust Company, FSB 314-244-5000 www.tiaa-cref.org | C- | 1000 | 1.08 |
Academy Bank 314-965-2400 www.academybankmw.com | B- | 500 | 0.9 |
Midland States Bank 636-519-8844 www.midlandstatesbank.com | B | 500 | 0.75 |
Carrollton Bank 618-498-2107 www.carrolltonbanking.com | B | 10000 | 0.65 |
Great Southern Bank 636-928-2265 www.greatsouthernbank.com | B | 250 | 0.55 |
3 Year CD | Financial Strength Rating | Minimum to Earn Interest ($) | APY(%) |
TIAA-CREF Trust Company, FSB 314-244-5000 www.tiaa-cref.org | C- | 1000 | 1.36 |
Academy Bank 314-965-2400 www.academybankmw.com | B- | 500 | 1.0 |
Bank of Edwardsville 618-656-0057 www.4thebank.com | B- | 1000 | 1.0 |
Midland States Bank 636-519-8844 www.midlandstatesbank.com | B | 500 | 0.8 |
Carrollton Bank 618-498-2107 www.carrolltonbanking.com | B | 10000 | 0.8 |
4 Year CD | Financial Strength Rating | Minimum to Earn Interest ($) | APY(%) |
TIAA-CREF Trust Company, FSB 314-244-5000 www.tiaa-cref.org | C- | 1000 | 1.4 |
UMB Bank, National Association 314-612-8173 www.umb.com | C+ | 500 | 1.25 |
Bank of Edwardsville 618-656-0057 www.4thebank.com | B- | 1000 | 1.2 |
Academy Bank 314-965-2400 www.academybankmw.com | B- | 500 | 1.1 |
Midland States Bank 636-519-8844 www.midlandstatesbank.com | B | 500 | 1.1 |
5 Year CD | Financial Strength Rating | Minimum to Earn Interest ($) | APY(%) |
Associated Bank, National Association 618-398-8503 www.associatedbank.com | B- | 10000 | 2.0 |
Bank of Edwardsville 618-656-0057 www.4thebank.com | B- | 1000 | 1.85 |
Reliance Bank 314-842-3979 www.reliancebankstl.com | C | 1000 | 1.52 |
TIAA-CREF Trust Company, FSB 314-244-5000 www.tiaa-cref.org | C- | 1000 | 1.49 |
Midland States Bank 636-519-8844 www.midlandstatesbank.com | B | 500 | 1.35 |
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.