Since the start of the year, depositors appear to be flocking to12-month certificates of deposit because of their higher rates andre-pricing opportunities.
|According to Market Rates Insight, which tracks rates andfinancial service trends for credit unions, banks and thrifts, the12-month CD was re-priced every four days since January, whereasthe average for all other CDs was 12 days.
|MRI also found that the average interest rate paid on the12-month CD (2.28%) has remained higher than the average interestrate paid on all other CDs (1.99%) even for longer terms such asfive-year CDs.
|"Banks and credit unions are very tuned in to the market and tothe needs of their depositors," said Dan Geller, executive vicepresident of MRI. "If, as the analysis points out, they re-pricedtheir 12-month CD every four days, and kept the interest raterelatively high, it shows that there has been high demand for thisdeposit product, and therefore banks and credit unions arecompeting for this business."
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
