Website: https://www.cathaybank.com

Authority: Cathay Bank Sino-American bank with 65 branches across the United States with a large presense in California

How to open a Cathay Bank Certificate of Deposit

- You cannot open a CD online through their website it.

- You will have to visit a physical branch to open a CD or  contact them on 1-800-9CATHAY or (1-800-922-8429) for further information you may require.

Information on Cathay Bank 1 Year CD Rates

Like other banks across the industry, Cathay Bank relies on deposits for its operations. For Cathay Bank rates deposits are a low-cost source of funds for loans, and losing this low cost funding sources increases its funding costs and reduces  its net interest income. While Cathay believes that its deposit accounts are relatively stable sources of funds, if they decide to increase interest rates too high to retain deposits, its earnings could be adversely affected, which could then hav an adverse effect on the bank. Since a decline in available funding it also could adversely impact its ability to originate loans. Cathay Bank also faces substantial competition from major and online banks on CDs especially when customers perceive alternative deposit providers provide a better yield. As a 1 year CD is a short term, it is a higher risk premium than a 7 day deposit and less risk premium than a 5 year deposit. As a bank with a branch network to maintain, it may offer rates that could be less competitive than online banks.  

Specific information on this 1 Year CD

The interest rate indiciated was based on the CD product for a range between 1 year to 23 months with a minimum opening deposit of $50,000 required.