New Report from Market Rates Insight Reveals Bank Depositors Seek Holding Pattern with 12-month CDs Until the Economy Recovers
Summary
San Anselmo, CA, April 24, 2009 --( MRI’s latest National Pricing Indicator (NPI) weekly report reveals that the 12-month Special CD was re-priced three times more often than the average for all other CDs.“If, as the analysis points out, they re-priced their 12-month Special CD every four days, and kept the interest rate relatively high, it shows that there has been high demand for this deposit product, and therefore banks and credit unions are competing for this business.” Dr. Geller adds that with the current stock market volatility, investors are turning to short-term, insured investment options like CDs to protect their money and wait out the economic storm.The Special 12-month CD category seems to be gaining the most attention because it offers an attractive return within a year, which seems to suit depositors’ comfort and commitment level.Geller adds that with the current stock market volatility, investors are turning to short-term, insured investment options like CDs to protect their money and wait out the economic storm.The Special 12-month CD category seems to be gaining the most attention because it offers an attractive return within a year, which seems to suit depositors’ comfort and commitment level.