Consumers appear to be responding to aggressive premiums offered on 48-month certificates of deposit at banks.
Over the past 12 months, according to data-tracking firm Market Rates Insight, balances of four-year CDs have increased from $149 billion to $166 billion. During the same time period, balances of all other CDs declined from $264 billion to $225 billion. Credit union data was not tracked by MRI.
Premiums are likely driving the growth, MRI found. Over the last 12 months, the premium offered on 48-month CDs increased from a low of 0.49% to a high of 1.04% last week, which was above the 0.59% national premium average on all deposit products.
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.
