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Banks
are
dialing
back
the
yields
they
pay
on
certificates
of
deposit,
but
a
notable
name
is
still
commanding
one
of
the
highest
rates
available.
New
York
Community
Bank
offers
the
highest
CD
rate
for
maturities
under
36
months
among
the
banks
in
Morgan
Stanley’s
coverage,
coming
in
at
5.5%.
Webster
Financial
followed
in
second
place,
with
a
rate
of
5.4%,
and
Bank
OZK
rounded
out
the
top
three
with
a
rate
of
5.3%.
New
York
Community
Bank
is
offering
a
sweetened
annual
percentage
yield
at
a
time
when
the
institution
itself
is
going
through
a
period
of
tumult.
Even
as
the
company
is
willing
to
pay
an
annual
percentage
yield
of
5.5%
on
a
seven-month
CD,
its
shares
are
down
more
than
50%
this
year.
In
February
alone,
the
stock
is
off
by
24%.
YTD
performance
of
NYCB
shares
In
late
January,
the
Hicksville,
New
York-based
bank
took
a
higher-than-anticipated
charge
against
expected
loan
losses.
The
bank
also
slashed
its
quarterly
dividend
by
about
71%
to
5
cents
a
share.
Earlier
this
month,
Moody’s
Investors
Service
downgraded
the
bank’s
long-term
ratings
to
junk,
citing
“multi-faceted
financial,
risk-management
and
governance
challenges
facing
NYCB.”
Nevertheless,
savers
should
be
aware
that
their
deposits,
be
they
in
bank
accounts
or
in
CDs,
are
subject
to
protection
by
the
Federal
Deposit
Insurance
Corporation.
Generally,
the
FDIC
covers
$250,000
per
depositor,
per
FDIC-insured
bank,
for
each
account
ownership
category.
Top
CD
rates
at
banks
under
Morgan
Stanley’s
coverage
|
Ticker |
Name |
1-12 month CD rate |
13-36 month CD rate |
Highest Rate < 36 months |
|---|---|---|---|---|
| NYCB |
New York Community Bank |
5.50% | 5.15% | 5.50% |
| WBS |
Webster Financial Corporation |
5.40% | 3.60% | 5.40% |
| OZK |
Bank OZK |
5.30% | 5.00% | 5.30% |
| BKU | BankUnited | 5.25% | 0.10% | 5.25% |
| CMA | Comerica | 5.25% | 0.15% | 5.25% |
Source:
Morgan
Stanley
Expect
CD
rates
across
the
board
to
continue
falling,
with
longer-dated
offers
likely
to
decline
faster
than
short-dated
instruments,
wrote
Morgan
Stanley
analyst
Betsy
Graseck
in
a
Thursday
report.
“Once
the
Fed
eventually
begins
to
cut,
the
path
for
net
interest
income
will
depend
heavily
on
how
quickly
banks
can
bring
down
their
overall
deposit
costs,”
she
said.
