As the rate of inflation ticks up, some credit unions and banksare experiencing an increase of interest in relationshipcertificates of deposit.

New data from research firm Market Rates Insight showed fromMarch 2010 to March 2011, the number of relationships CDs offerednationally by banks and credit unions increased by 1.48%.

Within the same time period, the national inflation rate hasincreased from 1.15% in August 2010 to 2.68% in March 2011.Relationship CDs tend to require additional accounts with afinancial institution.

The same trend occurred from October 2006 to August 2008, whichwas the previous inflationary period, according to MRI. During thattime, the number of relationship CDs grew by 3.4% while the annualinflation rate increased from 1.31% to 5.37%.

Similar to the current inflationary cycle, no other type of CDshowed a meaningful increase in volume and some CD types havedecreased in volume, the data showed.

“Contrary to common belief, the volume of bump CDs, which [are]considered ‘inflation proof’ CDs, declined in the last inflationarycycle,” said Dan Geller, executive vice president of MRI.

Geller said the volume of bump CDs in that last cycle fromOctober 2006 to August 2008 declined by negative 0.16%. The dropalmost mirrors the period of the past 12 months at negative0.41%.