Market Overview

Recent Rise in Long-Term Rates Bodes Well for Bank Profitability

TheStreet and RateWatch Report Top CD Rate Issuers

NEW YORK, Jan. 29, 2013 /PRNewswire/ -- RateWatch, a premier banking data and analytics service owned by TheStreet, Inc. (NASDAQ: TST) reported today that interest rates for savings products are holding steady.  The average interest rate on a 5-year CD decreased by one basis point based on data collected from over 90,000 financial institution locations.

(Logo: http://photos.prnewswire.com/prnh/20130102/NY35868LOGO-b )

Market yields for 10-year U.S. Treasury bonds reached the 2.00% line on Monday, for the first time since April 25 of last year, according to the Treasury's data.  The recent rise in long-term rates will eventually bode well for profitability for many banks, as yields on other long-term assets rise, although in the near term, a concurrent rise in mortgage backed securities yields means lower profits for banks on the sale of newly originated loans. 

It is too early in this rate cycle for the rising long-term rates to translate to higher deposit rates.  The Federal Reserve Open Market Committee in December said that it expected to keep its target short-term federal funds rate in a target range of zero to 0.25% for "at least as long as the unemployment rate remains above 6-1/2 percent," and as long as inflation projections remain within 0.5% of the central bank's long-term goal of 2%.

NATIONAL AVERAGE RESULTS - $10K


This
week

Last
week

Money Market

0.12

0.12

1 month CD

0.06

0.06

3 month CD

0.10

0.10

6 month CD

0.16

0.16

1 year CD

0.26

0.26

2 year CD

0.41

0.41

3 year CD

0.55

0.55

4 year CD

0.68

0.68

5 year CD

0.87

0.88

TOP RATE ISSUERS - $10K
This is a list of issuers with top interest rates.  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

Sallie Mae Bank

A-

1

1.050

801-281-1423

www.salliemaebank.com

Green Bank, National Association

C+

500

1.000

713-275-8370

www.greenbank.com

Ally Bank

B+

1

0.900

877-247-2559

www.ally.com

1 Month CD

Financial
Strength
Rating

Minimum
to Earn
Interest

APY

First NBC Bank

B-

1000

0.510

504-671-3550

www.firstnbcbank.com

Pinnacle Bank

B-

500

0.500

402-529-3581

www.pinnbank.com

Carter Bank & Trust

C+

2500

0.500

828-325-9800

www.carterbankandtrust.com

3 Month CD

Financial
Strength
Rating

Minimum
to Earn
Interest

APY

Eloan.com

C-

10000

0.650

888-533-5333

www.eloan.com

EverBank

D+

1500

0.600

888-882-3837

www.everbank.com

Beal Bank, SSB

C

1000

0.511

205-202-8511

www.bealbank.com

6 Month CD

Financial
Strength
Rating

Minimum
to Earn
Interest

APY

Doral Bank

E+

1000

0.900

212-329-3700 

www.doralbankdirect.com

Beal Bank USA

B-

1000

0.750

702-598-3500

www.bealbankusa.com

Discover Bank

C+

2500

0.750

888-765-6654

www.discoverbank.com

1 Year CD

Financial
Strength
Rating

Minimum
to Earn
Interest

APY

Beal Bank USA

B-

1000

1.110

786-347-3601

www.bealbankusa.com

Sallie Mae Bank

A-

1

1.050

801-281-1423

www.salliemaebank.com

Doral Bank

E+

500

1.050

850-914-2525

www.doralbankflorida.com

2 Year CD

Financial
Strength
Rating

Minimum
to Earn
Interest

APY

Doral Bank

E+

500

1.300

850-914-2525

www.doralbankflorida.com

FirstBank Florida

D+

1000

1.250

305-740-9522

www.firstbankfla.com

Compass Bank

D+

5000

1.250

205-297-1986

www.bbvacompass.com

3 Year CD

Financial
Strength
Rating

Minimum
to Earn
Interest

APY

First NBC Bank

B-

10000

1.970

504-671-3550

www.firstnbcbank.com

First Guaranty Bank

C

500

1.450

985-345-7685

www.fgb.net

Doral Bank

E+

500

1.450

850-914-2525

www.doralbankflorida.com

4 Year CD

Financial
Strength
Rating

Minimum
to Earn
Interest

APY

Institution for Savings In Newburyport

B

1

1.750

978-462-3106

www.institutionforsavings.com

First Guaranty Bank

C

500

1.700

985-345-7685

www.fgb.net

Green Bank, National Association

C+

1000

1.700

713-275-8370

www.greenbank.com

5 Year CD

Financial
Strength
Rating

Minimum
to Earn
Interest

APY

First NBC Bank

B-

10000

2.120

504-671-3550

www.firstnbcbank.com

Carter Bank & Trust

C+

100

2.020

828-325-9800

www.carterbankandtrust.com

Institution for Savings In Newburyport

B

1

2.000

978-462-3106

www.institutionforsavings.com

Financial Strength Rating: A=Excellent, B=Good, C=Fair, D=Weak, E=Very Weak 


    Plus sign "+" = top of range, Minus sign "-"= bottom of range

Data is surveyed weekly with averages calculated each Monday afternoon from RateWatch's unbiased national interest rate survey of over 90,000 financial institution locations across the United States.

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 90,000 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.

About TheStreet
TheStreet, Inc. is a leading digital financial media company that distributes its content through online, social media, tablet and mobile channels. The Company's network of brands includes: TheStreet, RealMoney, RealMoney Pro, Stockpickr, Action Alerts PLUS, Options Profits, Chat on TheStreet, MainStreet and RateWatch. For more information on TheStreet's business, visit www.t.st. For financial and business news, actionable trading ideas, stock quotes and more, visit TheStreet.com, follow TheStreet on Facebook and Twitter, and access TheStreet through all major mobile and tablet platforms.  For more information on The Deal, visit www.thedeal.com.

Contact: 

Erin Corcoran  
TheStreet, Inc.  
212-321-5566  
erin.corcoran@thestreet.com  

RELATED LINKS
www.rate-watch.com

SOURCE TheStreet

 

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters