Increasing interest rates always presents a quandary from CD investors and savers.  Now, a bank in St Louis has a high yield CD that helps solves this quandary with an interest rate that starts out well above the competition, may increase if the Prime Rate increases, cannot go lower, and comes with FDIC guarantees.

Royal Banks of Missouri customers can get their hands on a certificate of deposit that has an interest rate tied to changes in the Prime Rate.  Not only does the rate on this account increase with the Prime Rate but the starting rate on day one is well above the national average rate on comparable bank CDs.  Like all CDs offered by the bank, the account is covered by FDIC insurance up to $250,000.00 per depositor.

The bank special CD is a variable rate account that will float at 35% of the Prime Rate.  The Prime Rate used to determine the CD interest rate will be based on The Wall Street Journal’s published Prime Rate.  The initial interest rate on the CD will be 1.40% and the effective Annual Percentage Yield (APY) will be 1.41%.  The interest rate will never fall below the initial rate at the time of opening.

The current rate on this CD is more than five times the national average rate found on one year term bank CD accounts and more than three time the national average bank CD rate for two year term CDs (source: FDIC,

The current CD rates is based on the Wall St Journal Prime Rate effective as of 3/15/2017, which is currently 4.00%.  35% of the published rate comes to the 1.40%, the rate currently promoted by Royal Banks of Missouri.

There is also an option to add to the CD anytime during the 15 months.  The minimum opening deposit for this account is of $1,000.00.  Early withdrawal penalties will apply.  Fees may reduce earnings on this account.

The Royal Banks of Missouri certificate of deposit is a safe and secure way to earn higher interest rates on your savings for a fixed period of time.  In addition to the CD rate promotion, the bank has a variety of CD terms, customers can choose to invest their money anywhere from three to 60 months.

Account holders can manage their earning by combining their choice of time commitment, deposit amount, and either a fixed rate or floating rate account.  Interest checks may be requested on certificates of $10,000.00 or more, which would affect the APY disclosed above.

Interest rates offered above are subject to change without prior notice.  Additional terms and conditions may apply.

Royal Banks of Missouri is the wholly owned subsidiary of Royal Bancshares Inc, a bank holding company headquartered in University City, Missouri.  The bank remains locally owned and offers a full range of banking services to individuals and business clients in the St. Louis metropolitan area.  Royal Banks operate five locations in the St. Louis area.

More information about the bank rates in the St Lois market as well as the account terms offered by Royal Banks of Missouri can be obtained by calling a bank customer service representative at (314) 212-1500.

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