THESTREET, INC. 
By NEW YORK, Jan. 8, 2013 /PRNewswire/ -- RateWatch, a premier banking data and analytics service owned by TheStreet, Inc. (NASDAQ: TST) reported today that the average national rate on a 4-year and 5-year CD fell 0.01 percent based on data collected from over 90,000 financial institution locations. RateWatch also reported today the top rate issuers across the nation along with financial strength ratings.
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The main reason for bank deposit rates being so low for so long is the Federal Reserve's accommodative policy of keeping its target range for the short-term federal funds rate in a range of zero to 0.25% since late 2008; however, The Federal Deposit Insurance Corporation's Transaction Account Guarantee Program ended on Dec. 31, and that could put some pressure on smaller banks' liquidity.
The Transaction Account Guarantee Program went into effect in November 2008, to essentially remove any limit on FDIC deposit insurance coverage for most noninterest-bearing transaction accounts. This provided a tremendous boost in cheap liquidity, even for banks in weak financial condition, because small businesses no longer had to worry about the safety of their checking account deposits, which could easily exceed the normal deposit insurance limits. Now that the program has ended, businesses who were sticking with the banks because of the certainty of the deposit insurance protection may consider other cash management options, including non-bank money market funds.
With money market funds paying very low rates, it would be surprising to see quick movement out of bank checking accounts, however, some community banks that still have a high level of nonperforming loans could see some deposit flight, putting pressure on them to be more competitive in attracting non-checking deposits.
NATIONAL AVERAGE RESULTS - $10K
National Average Results -10K
This Last
week week
---- ----
Money Market 0.12 0.12
------------ ---- ----
1 month CD 0.06 0.06
---------- ---- ----
3 month CD 0.10 0.10
---------- ---- ----
6 month CD 0.17 0.17
---------- ---- ----
1 year CD 0.26 0.26
--------- ---- ----
2 year CD 0.42 0.42
--------- ---- ----
3 year CD 0.56 0.56
--------- ---- ----
4 year CD 0.69 0.70
--------- ---- ----
5 year CD 0.89 0.90
--------- ---- ----
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, visitwww.weissratings.com/help/what-our-ratings-mean.aspx. Information is believed to be accurate, but not guaranteed.
Money Market Financial Minimum APY
Strength to Earn
Rating Interest
--- ------ --------
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 0.950
--- --- -----
877-247-2559
www.ally.com
------------
1 Month CD Financial Minimum APY
Strength to Earn
Rating Interest
--- ------ --------
First NBC Bank C+ 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 Minimum APY
Strength to Earn
Rating Interest
--- ------ --------
Eloan.com D+ 10000 0.650
--- ----- -----
888-533-5333
www.eloan.com
-------------
EverBank D 1500 0.560
--- ---- -----
888-882-3837
www.everbank.com
----------------
Beal Bank USA C 1000 0.511
--- ---- -----
205-202-8511
www.bealbankusa.com
-------------------
6 Month CD Financial Minimum APY
Strength to Earn
Rating Interest
--- ------ --------
Carter Bank & Trust C 2500 1.000
--- ---- -----
910-630-2500
www.carterbankandtrust.com
--------------------------
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
-------------------
1 Year CD Financial Minimum APY
Strength to Earn
Rating Interest
--- ------ --------
Doral Bank E+ 500 1.150
--- --- -----
212-584-6820
www.doralbankny.com
-------------------
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
---------------------
2 Year CD Financial Minimum APY
Strength to Earn
Rating Interest
--- ------ --------
Doral Bank E+ 500 1.400
--- --- -----
212-584-6820
www.doralbankny.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 Minimum APY
Strength to Earn
Rating Interest
--- ------ --------
First NBC Bank C+ 10000 1.970
--- ----- -----
504-671-3550
www.firstnbcbank.com
--------------------
Doral Bank E+ 500 1.550
--- --- -----
212-584-6820
www.doralbankny.com
-------------------
First Guaranty Bank C- 500 1.450
--- --- -----
985-345-7685
www.fgb.net
-----------
4 Year CD Financial Minimum APY
Strength to Earn
Rating Interest
--- ------ --------
Institution for Savings In Newburyport B 1 1.750
--- --- -----
978-462-3106
www.institutionforsavings.com
-----------------------------
Yakima Federal Savings & Loan Association A- 10000 1.750
--- ----- -----
509-248-2634
www.yakimafed.com
-----------------
First Guaranty Bank C- 500 1.700
--- --- -----
985-345-7685
www.fgb.net
-----------
5 Year CD Financial Minimum APY
Strength to Earn
Rating Interest
--- ------ --------
First NBC Bank C+ 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.
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TheStreet, Inc.
212-321-5566
erin.corcoran@thestreet.com
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