New Market Rates Insight Report Shows Banks Turning to Highest Return for the Shortest Term to Build Deposits
Banks and credit unions are offering short-term CD and Money Market Specials at twice the average regular rate to cater to the short-term deposits market.
San Anselmo, CA, October 16, 2009 --(PR.com)-- A new market 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 the relative premium paid on short-term CDs (one-year or less) is now averaging twice the relative premium paid on long-term CDs of one year or more. This trend shows that banks are catering to depositors concerns about the economy in an effort to build deposits.
Premium is the additional interest rate offered on Special deposits compare to the Regular interest rate normally being offered. Relative premium is the percentage difference between the Regular and Special interest rate.
The analysis shows that the premium paid on short-term CDs increased from 66.3 percent in January of 2009 to 100.4 percent in September – an increase of 34.1 percent. At the same time, the premium paid on long-term CDs decreased from 48.4 percent in January to 46.3 percent in September – a decrease of 2.1 percent. As of September of 2009, the relative premium paid on short-term CDs is twice as much – 100.4 percent – as the relative premium paid on long-term CDS at 46.3 percent.
“The findings of our most recent analysis show the market for deposits is focused on the highest return for the shortest term,” said Dr. Dan Geller, Executive Vice President at Market Rates Insight. “Clearly banks and credit unions are getting more aggressive with returns on short-term deposit products in order to build deposits.”
The complete analysis can be viewed on the Market Rates Insight website at this location: http://marketratesinsight.com/docs/sa10.13.09.pdf.
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
###
Premium is the additional interest rate offered on Special deposits compare to the Regular interest rate normally being offered. Relative premium is the percentage difference between the Regular and Special interest rate.
The analysis shows that the premium paid on short-term CDs increased from 66.3 percent in January of 2009 to 100.4 percent in September – an increase of 34.1 percent. At the same time, the premium paid on long-term CDs decreased from 48.4 percent in January to 46.3 percent in September – a decrease of 2.1 percent. As of September of 2009, the relative premium paid on short-term CDs is twice as much – 100.4 percent – as the relative premium paid on long-term CDS at 46.3 percent.
“The findings of our most recent analysis show the market for deposits is focused on the highest return for the shortest term,” said Dr. Dan Geller, Executive Vice President at Market Rates Insight. “Clearly banks and credit unions are getting more aggressive with returns on short-term deposit products in order to build deposits.”
The complete analysis can be viewed on the Market Rates Insight website at this location: http://marketratesinsight.com/docs/sa10.13.09.pdf.
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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