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CD Rates Continue to Fall After Federal Reserve Ties Policy to Specific Benchmark for Unemployment

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NEW YORK, Dec. 18, 2012 (GLOBE NEWSWIRE) -- RateWatch, a premier banking data and analytics service owned by TheStreet, Inc. (Nasdaq:TST), reported today that interest rates for savings products generally decreased over the previous week with the average national rate on a 1 month, 1 year, 2 year, 4 year, and 5 year CDs falling 0.01 percent based on data collected from over 90,000 financial institution locations.





The Federal Reserve has kept its target federal funds rate in a range of zero to 0.25% since late 2008 and last Wednesday said it anticipated "that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored."

This is the first time that the central bank has tied its rate policy to a specific benchmark for the unemployment rate.

The Fed also said that it would continue to purchase agency mortgage backed securities at a pace of $40 billion a month, and that it would continue buying long-term U.S. Treasury securities "initially" at a pace of $45 billion a month during 2013. This stance will be even more "highly accommodative" than it has been during 2012, because the central bank will stop making concurrent sales of short-term Treasuries, adding further downward pressure to long-term rates.

NATIONAL AVERAGE RESULTS - $10K

This week Last week
Money Market 0.13 0.13
1 month CD 0.06 0.07
3 month CD 0.11 0.11
6 month CD 0.17 0.17
1 year CD 0.26 0.27
2 year CD 0.42 0.43
3 year CD 0.57 0.57
4 year CD 0.70 0.71
5 year CD 0.90 0.91

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
801-281-1423 A- 1 1.050
www.salliemaebank.com
Green Bank, National Association
713-275-8370 C 500 1.000
www.greenbank.com
Ally Bank
877-247-2559 B 1 0.950
www.ally.com
1 Month CD Financial
Strength
Rating
Minimum
to Earn
Interest
APY
Carter Bank & Trust
828-325-9800 C 2500 0.750
www.carterbankandtrust.com
First NBC Bank
504-671-3550 C+ 1000 0.510
www.firstnbcbank.com
Pinnacle Bank
402-529-3581 B- 500 0.500
www.pinnbank.com
3 Month CD Financial
Strength
Rating
Minimum
to Earn
Interest
APY
Carter Bank & Trust
828-325-9800 C 2500 0.750
www.carterbankandtrust.com
Eloan.com
888-533-5333 D+ 10000 0.650
www.eloan.com
EverBank
888-882-3837 D 1500 0.560
www.everbank.com
6 Month CD Financial
Strength
Rating
Minimum
to Earn
Interest
APY
Carter Bank & Trust
828-325-9800 C 2500 1.000
www.carterbankandtrust.com
Doral Bank
212-329-3700 E+ 1000 0.900
www.doralbankdirect.com
Beal Bank USA
702-598-3500 B 1000 0.750
www.bealbankusa.com
1 Year CD Financial
Strength
Rating
Minimum
to Earn
Interest
APY
Beal Bank USA
786-347-3601 B 1000 1.110
www.bealbankusa.com
Carter Bank & Trust
828-325-9800 C 100 1.100
www.carterbankandtrust.com
Sallie Mae Bank
801-281-1423 A- 1 1.050
www.salliemaebank.com
2 Year CD Financial
Strength
Rating
Minimum
to Earn
Interest
APY
Doral Bank
850-914-2525 E+ 500 1.300
www.doralbankflorida.com
FirstBank Florida
305-740-9522 D 1000 1.250
www.firstbankfla.com
Compass Bank
205-297-1986 D+ 5000 1.250
www.bbvacompass.com
3 Year CD Financial
Strength
Rating
Minimum
to Earn
Interest
APY
First NBC Bank
504-671-3550 C+ 10000 1.970
www.firstnbcbank.com
Signature Bank
646-822-1500 B+ 5000 1.660
www.signatureny.com
Doral Bank
850-914-2525 E+ 500 1.500
www.doralbankflorida.com
4 Year CD Financial
Strength
Rating
Minimum
to Earn
Interest
APY
Institution for Savings In Newburyport
978-462-3106 B 1 1.750
www.institutionforsavings.com
Yakima Federal Savings & Loan Association
509-248-2634 A- 10000 1.750
www.yakimafed.com
First Guaranty Bank
985-345-7685 C- 500 1.700
www.fgb.net
5 Year CD Financial
Strength
Rating
Minimum
to Earn
Interest
APY
First NBC Bank
504-671-3550 C+ 10000 2.120
www.firstnbcbank.com
Institution for Savings In Newburyport
978-462-3106 B 1 2.000
www.institutionforsavings.com
Compass Bank
205-297-1986 D+ 5000 2.000
www.bbvacompass.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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Source:TheStreet, Inc.