New Market Rates Insight Report Shows Short-Term Jumbo Business CD on the Rise as Businesses “Park” Their Money
Latest MRI rate research shows that nearly 30 percent of all Jumbo Business CDs are now offered in one, three and 12-month terms.
San Anselmo, CA, February 21, 2009 --(PR.com)-- Banks and credit unions are focusing on short-term Jumbo Business CDs to build deposits according to the latest research findings from Market Rates Insight, (MRI), a leading research firm that tracks rates for deposits, loans, and fees. This week’s MRI National Pricing Indicators study shows that over one-quarter (29.3 percent) of Jumbo Business CDs ($100,000 to $500,000) are offered in short terms up to 12 months. The 12-month CD makes up 10.8 percent of all other terms in this product category followed by one-month CD at 9.7 percent, and a three-month CD at 8.8 percent.
In comparison, nearly one-third (32.5 percent) of Business CDs, less than $100K, is offered in longer-terms of 12 to 37 months.
“This finding is a clear indication that businesses are placing their retained earnings and capital in a short-term holding pattern while the economic landscape is still shaky,” said Dr. Dan Geller, Executive Vice President of Market Rates Insight. “Clearly, banks and credit unions are leveraging this trend to attract new deposits by increasing the number of Business Jumbo CDs they offer.”
Here is a snapshot of the key findings from this week’s report:
- Overall, modest increase (0.02 bps) in national average APY on CDs.
- Highest increase (0.25 bps) in Money Market special products.
- Highest spread between average Regular and Special CD - 30 months (1.53 bps).
- Highest repricing volume (221 percent) CD special 12-month terms.
For a copy of the report, send a request to info@marketratesinsight.com.
Market Rates Insight offers weekly Pricing Indicator reports for CDs, checking, savings, money markets, and other types of deposit and loan products. MRI’s MyRI Web research portal offers subscribers the most current pricing intelligence available to help them price and re-price products with greater precision.
About Market Rates Insight
For more than two decades, Market Rates Insight (MRI) has been helping subscribers price with precision by providing banks, thrifts, credit unions, and other financial institutions with accurate market intelligence on deposits, loans, and fees. MRI uses deposit surveys, mortgage and consumer loan surveys, fee and feature studies, scanned ads, new product alerts, and market share and money fund reports to give subscribers the intelligence they need to profitably react to emerging trends. MRI’s products include customized, web-enabled market research tools that report on rates, as well as online searchable databases, gauges, alerts, and dashboards that aggregate key client data to provide real-time views on how they stack up against market competitors.
Market Rates Insight is located in San Anselmo, California. For more information, see www.marketratesinsight.com/new.
Contact:
Kevin Coyne
Market Rates Insight
877-490-8702
Kevin.Coyne@MarketRatesInsight.com
Tom Woolf
Market Rates Insight
(415) 259-5638
tom.woolf@marketratesinsight.com
###
In comparison, nearly one-third (32.5 percent) of Business CDs, less than $100K, is offered in longer-terms of 12 to 37 months.
“This finding is a clear indication that businesses are placing their retained earnings and capital in a short-term holding pattern while the economic landscape is still shaky,” said Dr. Dan Geller, Executive Vice President of Market Rates Insight. “Clearly, banks and credit unions are leveraging this trend to attract new deposits by increasing the number of Business Jumbo CDs they offer.”
Here is a snapshot of the key findings from this week’s report:
- Overall, modest increase (0.02 bps) in national average APY on CDs.
- Highest increase (0.25 bps) in Money Market special products.
- Highest spread between average Regular and Special CD - 30 months (1.53 bps).
- Highest repricing volume (221 percent) CD special 12-month terms.
For a copy of the report, send a request to info@marketratesinsight.com.
Market Rates Insight offers weekly Pricing Indicator reports for CDs, checking, savings, money markets, and other types of deposit and loan products. MRI’s MyRI Web research portal offers subscribers the most current pricing intelligence available to help them price and re-price products with greater precision.
About Market Rates Insight
For more than two decades, Market Rates Insight (MRI) has been helping subscribers price with precision by providing banks, thrifts, credit unions, and other financial institutions with accurate market intelligence on deposits, loans, and fees. MRI uses deposit surveys, mortgage and consumer loan surveys, fee and feature studies, scanned ads, new product alerts, and market share and money fund reports to give subscribers the intelligence they need to profitably react to emerging trends. MRI’s products include customized, web-enabled market research tools that report on rates, as well as online searchable databases, gauges, alerts, and dashboards that aggregate key client data to provide real-time views on how they stack up against market competitors.
Market Rates Insight is located in San Anselmo, California. For more information, see www.marketratesinsight.com/new.
Contact:
Kevin Coyne
Market Rates Insight
877-490-8702
Kevin.Coyne@MarketRatesInsight.com
Tom Woolf
Market Rates Insight
(415) 259-5638
tom.woolf@marketratesinsight.com
###
Contact
Market Rates Insight
Tom Woolf
415-259-56t38
www.marketratesinsight.com/new
Tom Woolf
415-259-56t38
www.marketratesinsight.com/new
Contact
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