Pricing information and analysis firm Market Rates Insight reported Thursday the national average rate for deposits is projected to remain flat in May, which would be the first time since May of 2007 that deposit rates have not declined. May's national average for overall deposit accounts is projected to remain flat at 0.41%, the same figure reported in April.

The average rate for liquid accounts, such as checking, savings and money market, is also projected to stay the same as last month at 0.12%, and the average rate for certificate of deposits is further projected to remain the same as last month at 0.54%.

In the last five years, the national average rate for liquid accounts dropped 67 basis points, from 0.79% in May of 2007 to 0.12% in May of this year. The national average rate for certificate of deposit dropped 356 basis points, from 4.07% in May of 2007 to 0.51% in May of this year. Rates of special accounts, which are temporary promotions, are also projected to remain mostly flat in May with only slight fluctuation of 1 or 2 basis points.

“If the economy continues to improve at the current pace.” said Dan Geller, executive vice president of the San Anselmo, Calif.-based firm, “we are likely to see a turning point in deposit rates later this year barring, of course, any adverse impact by the European sovereign debt crisis or a major spike in oil prices.”

Instant Insights /

MRI: Deposit Rates May Hit Bottom in May

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