5-Year CD Rates in Greater Austin 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 in all maturities over the past week amid generally positive economic data, including third quarter GDP growth of 5%," 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 Austin Region area, the average 5-year CD rate sat at 0.93%, 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 Compass Bank. The average 3-year CD rate in Greater Austin Region was 0.66% with a range of 0.05% to 1.05% found at American Bank of Texas. And if you are on the market for a 1-year CD, take a look at Compass Bank, which currently offers a rate of 0.45% as compared to the Greater Austin Region average of 0.35%. Other top rate issuers can be found in the tables that follow.

GREATER AUSTIN REGION AVERAGE RESULTS - $10K

Avg Rate This
week
Highest Available
Rate
Highest Available Rate Issuer
Money Market 0.12% 0.2% Hanmi Bank
1 month CD 0.09% 0.15% Green Bank, National Association
3 month CD 0.15% 0.25% PlainsCapital Bank
6 month CD 0.23% 0.35% PlainsCapital Bank
1 year CD 0.35% 0.45% Compass Bank
2 year CD 0.53% 0.85% Compass Bank
3 year CD 0.66% 1.05% American Bank of Texas
4 year CD 0.73% 1.31% American Bank of Texas
5 year CD 0.93% 2.0% Compass Bank

TOP RATE ISSUERS - $10K

This is a list of issuers with top interest rates in the Greater Austin 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 ($)
APY(%)
Hanmi Bank
512-583-8822
www.unitedcentralbank.com
B 5000 0.2
Prosperity Bank
512-869-4160
www.prosperitybankusa.com
B+ 2500 0.15
Bank of the Ozarks
512-398-4245
www.bankozarks.com
B 1000 0.15
Green Bank, National Association
512-617-6850
www.greenbank.com
B 10000 0.15
American Bank of Texas
512-255-8553
www.abtexasna.com
B 10000 0.15
1 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Green Bank, National Association
512-617-6850
www.greenbank.com
B 1000 0.15
Compass Bank
512-419-3401
www.bbvacompass.com
C+ 1 0.1
PlainsCapital Bank
512-506-2500
www.plainscapital.com
A- 1000 0.1
Texas Capital Bank, National Association
512-362-7300
www.texascapitalbank.com
B 1000 0.1
Capital One, National Association
512-642-6000
www.capitalone.com
C 1000 0.1
3 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
PlainsCapital Bank
512-506-2500
www.plainscapital.com
A- 1000 0.25
Texas Capital Bank, National Association
512-362-7300
www.texascapitalbank.com
B 1000 0.2
Green Bank, National Association
512-617-6850
www.greenbank.com
B 1000 0.15
American Bank of Texas
512-255-8553
www.abtexasna.com
B 10000 0.15
Hillcrest Bank
512-706-6900
www.hillcrestbank.com
B- 500 0.15
6 Month CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
PlainsCapital Bank
512-506-2500
www.plainscapital.com
A- 1000 0.35
Green Bank, National Association
512-617-6850
www.greenbank.com
B 1000 0.3
Texas Capital Bank, National Association
512-362-7300
www.texascapitalbank.com
B 1000 0.25
American Bank of Texas
512-255-8553
www.abtexasna.com
B 10000 0.25
Hillcrest Bank
512-706-6900
www.hillcrestbank.com
B- 500 0.2
1 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
PlainsCapital Bank
512-506-2500
www.plainscapital.com
A- 1000 0.45
Hanmi Bank
512-583-8822
www.unitedcentralbank.com
B 1000 0.45
Compass Bank
512-419-3401
www.bbvacompass.com
C+ 1 0.45
Green Bank, National Association
512-617-6850
www.greenbank.com
B 1000 0.4
American Bank of Texas
512-255-8553
www.abtexasna.com
B 10000 0.35
2 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Compass Bank
512-419-3401
www.bbvacompass.com
C+ 1 0.85
American Bank of Texas
512-255-8553
www.abtexasna.com
B 10000 0.7
Hanmi Bank
512-583-8822
www.unitedcentralbank.com
B 1000 0.65
Green Bank, National Association
512-617-6850
www.greenbank.com
B 1000 0.6
Independent Bank
512-261-3355
www.independent-bank.com
B+ 1000 0.6
3 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
American Bank of Texas
512-255-8553
www.abtexasna.com
B 10000 1.05
Northstar Bank of Texas
512-617-3600
www.nstarbank.com
B 1000 1.0
Extraco Banks, National Association
512-868-4100
www.extracobanks.com
C+ 1000 0.95
Independent Bank
512-261-3355
www.independent-bank.com
B+ 1000 0.9
Compass Bank
512-419-3401
www.bbvacompass.com
C+ 1 0.85
4 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
American Bank of Texas
512-255-8553
www.abtexasna.com
B 10000 1.31
Extraco Banks, National Association
512-868-4100
www.extracobanks.com
C+ 1000 1.3
Compass Bank
512-419-3401
www.bbvacompass.com
C+ 1 1.05
Northstar Bank of Texas
512-617-3600
www.nstarbank.com
B 1000 1.0
Green Bank, National Association
512-617-6850
www.greenbank.com
B 1000 0.8
5 Year CD Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Compass Bank
512-419-3401
www.bbvacompass.com
C+ 1 2.0
Extraco Banks, National Association
512-868-4100
www.extracobanks.com
C+ 1000 1.7
American Bank of Texas
512-255-8553
www.abtexasna.com
B 10000 1.56
Southside Bank
512-381-2320
www.southside.com
B 1000 1.41
Independent Bank
512-261-3355
www.independent-bank.com
B+ 1000 1.4

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.

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