Steepening Of Yield Curve Good For Banks; Not So Good For Savers TheStreet and RateWatch Report Top CD Rate Issuers

NEW YORK, June 4, 2013 /PRNewswire/ -- RateWatch, a premier banking data and analytics service owned by TheStreet, Inc. (NASDAQ: TST) reported no changes to any of the top rate issuers or to the National Averages this week.

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Since September, the central bank has been making monthly purchases of $85 billion in long-term securities in an attempt to hold long-term rates down.  But market, anticipating an end to the Fed's balance sheet expansion, has pushed the rate on 10-Year U.S. Treasury bonds up by 43 basis points since the end of April, to 2.13% on Tuesday.

While a steepening of the yield curve is very helpful for banks' interest spread, it doesn't do much for savers, as even the national average rate for 5-year CDs is unchanged, at 0.81%. "The Federal Open Market Committee has said repeatedly that it is "appropriate" for the federal funds rate to remain in its current range until the U.S. unemployment rate falls below 6.5%," says Philip van Doorn, TheStreet's Banking Analyst. " With recent economic reports providing a mixed picture of the ongoing economic recovery, it appears unlikely the FOMC will change its monetary policy at its next meeting beginning on June 18."

NATIONAL AVERAGE RESULTS - $10K


This

week

Last

week

Money Market

0.11

0.11

1 month CD

0.06

0.06

3 month CD

0.09

0.09

6 month CD

0.15

0.15

1 year CD

0.23

0.23

2 year CD

0.38

0.38

3 year CD

0.50

0.50

4 year CD

0.63

0.63

5 year CD

0.81

0.81

 

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

0.900

801-281-1423

www.salliemaebank.com

Mercantil Commercebank,

National Association

C

10000

0.900

305-460-8701

www.mercantilcb.com

Ally Bank

B+

1

0.840

877-247-2559

www.ally.com

1 Month CD

Financial

Strength

Rating

Minimum

to Earn

Interest
($)

APY
(%)

Carter Bank & Trust

C+

2500

0.500

276-632-2901

www.carterbankandtrust.com

Beal Bank USA

B-

1000

0.400

702-598-3500

www.bealbankusa.com

Umbrellabank.com

C

1000

0.400

866-862-7355

www.umbrellabank.com

3 Month CD

Financial

Strength

Rating

Minimum

to Earn

Interest
($)

APY
(%)

Beal Bank USA

B-

1000

0.510

702-598-3500

www.bealbankusa.com

Umbrellabank.com

C

1000

0.510

866-862-7355

www.umbrellabank.com

Institution for Savings In Newburyport

B

1

0.500

978-462-3106

www.institutionforsavings.com

6 Month CD

Financial

Strength

Rating

Minimum

to Earn

Interest
($)

APY
(%)

Doral Bank

D-

500

1.000

212-584-6820

www.doralbankny.com

CapitalSource Bank

B

10000

0.800

888-433-4272

www.capitalsourcebank.com

Beal Bank USA

B-

1000

0.750

702-598-3500

www.bealbankusa.com

1 Year CD

Financial

Strength

Rating

Minimum

to Earn

Interest
($)

APY
(%)

Doral Bank

D-

500

1.200

212-584-6820

www.doralbankny.com

Beal Bank USA

B-

1000

1.110

786-347-3601

www.bealbankusa.com

CapitalSource Bank

B

10000

1.010

888-433-4272

www.capitalsourcebank.com

2 Year CD

Financial

Strength

Rating

Minimum

to Earn

Interest
($)

APY
(%)

Doral Bank

D-

500

1.450

212-584-6820

www.doralbankny.com

Emigrant Bank

C+

1000

1.150

212-850-4521

www.emigrant.com

Signature Bank

A-

5000

1.110

646-822-1500

www.signatureny.com

3 Year CD

Financial

Strength

Rating

Minimum

to Earn

Interest
($)

APY
(%)

First NBC Bank

B-

10000

1.820

504-671-3550

www.firstnbcbank.com

Doral Bank

D-

500

1.550

212-584-6820

www.doralbankny.com

Customers Bank

D+

500

1.500

610-933-2000

www.customersbank.com

4 Year CD

Financial

Strength

Rating

Minimum

to Earn

Interest
($)

APY
(%)

Institution for Savings In

Newburyport

B

1

2.000

978-462-3106

www.institutionforsavings.com

Doral Bank

D-

500

1.650

212-584-6820

www.doralbankny.com

Emigrant Bank

C+

1000

1.650

212-850-4521

www.emigrant.com

5 Year CD

Financial

Strength

Rating

Minimum

to Earn

Interest
($)

APY
(%)

Institution for Savings In

Newburyport

B

1

2.000

978-462-3106

www.institutionforsavings.com

First NBC Bank

B-

10000

1.970

504-671-3550

www.firstnbcbank.com

Doral Bank

D-

500

1.850

212-584-6820

www.doralbankny.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 96,000 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 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.

About TheStreet
TheStreet, Inc. (www.t.st) is the leading independent digital financial media company providing business and financial news, investing ideas and analysis to personal and institutional investors worldwide.  The Company's portfolio of business and personal finance brands includes: TheStreet, RealMoney, RealMoney Pro, Stockpickr, Action Alerts PLUS, Options Profits, MainStreet and RateWatch. To learn more, visit www.thestreet.com.  The Deal, the Company's institutional business, provides intraday coverage of mergers and acquisitions and all other changes in corporate control.  To learn more, visit www.thedeal.com.

Contact:

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

 

SOURCE TheStreet, Inc.



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