New Market Rates Insight Analysis Reveals Consumers Choosing Short-Term CDs for Their Bank Deposits
Shift from Long-Term CDs an Indication that Depositors are “Temporarily Parking” Their Money Until Confidence in Economic Recovery Returns.
San Anselmo, CA, September 05, 2009 --(PR.com)-- A new analysis from Market Rates Insight (MRI, www.marketratesinsight.com), a leading research firm that tracks rates for deposits, loans, and fees for financial institutions, reveals that banks are responding to customers’ increasing demand for short-term CDs (with terms of one year or less) by adding more short-term deposit products in the last 60 days. The number of short-term CD products has increased nationally by 1.3 percent since July 3. At the same time, the number of long-term CD products (with terms over one year) has decreased by 1.3 percent during the same period.
The shift in the availability of short-term versus long-term CDs indicates that demand for short-term deposit products is increasing relative to long-term CDs. Short-term CDs are typically used as a temporary “holding place” for money until confidence in long-term prospects of the economy improves.
The analysis shows that The percentage of short-term CDs offered nationally has increased from 51.40 percent to 52.77 percent (up 1.3 percent) since July 3, 2009, and at the same time, the percentage of long-term CDs offered nationally has decreased from 48.60 percent to 47.23 percent (down 1.3 percent) during the same time period.
“The shift in the product-offering ratio between short-term and long-term CDs shows that demand for short-term is increasing relative to long-term CDs” said Dr. Dan Geller, Executive Vice President at Market Rates Insight, “This is a sign that fewer deposit consumers are confident about the prospect of economic recovery and are looking for secure, short-term investment alternatives.”
The complete analysis can be viewed on the Market Rates Insight website at www.marketratesinsight.com in the Research and Insights section.
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.
Contact:
Dr. Dan Geller
Market Rates Insight
415-448-8813
Dan.Geller@MarketRatesInsight.com
Tom Woolf
Market Rates Insight
(415) 259-5638
tom.woolf@marketratesinsight.com
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The shift in the availability of short-term versus long-term CDs indicates that demand for short-term deposit products is increasing relative to long-term CDs. Short-term CDs are typically used as a temporary “holding place” for money until confidence in long-term prospects of the economy improves.
The analysis shows that The percentage of short-term CDs offered nationally has increased from 51.40 percent to 52.77 percent (up 1.3 percent) since July 3, 2009, and at the same time, the percentage of long-term CDs offered nationally has decreased from 48.60 percent to 47.23 percent (down 1.3 percent) during the same time period.
“The shift in the product-offering ratio between short-term and long-term CDs shows that demand for short-term is increasing relative to long-term CDs” said Dr. Dan Geller, Executive Vice President at Market Rates Insight, “This is a sign that fewer deposit consumers are confident about the prospect of economic recovery and are looking for secure, short-term investment alternatives.”
The complete analysis can be viewed on the Market Rates Insight website at www.marketratesinsight.com in the Research and Insights section.
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.
Contact:
Dr. Dan Geller
Market Rates Insight
415-448-8813
Dan.Geller@MarketRatesInsight.com
Tom Woolf
Market Rates Insight
(415) 259-5638
tom.woolf@marketratesinsight.com
###
Contact
Market Rates Insight
Tom Woolf
415-259-5638
www.marketratesinsight.com/new
Tom Woolf
415-259-5638
www.marketratesinsight.com/new
Contact
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