Since the start of the year, depositors appear to be flocking to 12-month certificates of deposit because of their higher rates and re-pricing opportunities.

According to Market Rates Insight, which tracks rates and financial service trends for credit unions, banks and thrifts, the 12-month CD was re-priced every four days since January, whereas the average for all other CDs was 12 days.

MRI also found that the average interest rate paid on the 12-month CD (2.28%) has remained higher than the average interest rate paid on all other CDs (1.99%) even for longer terms such as five-year CDs.

"Banks and credit unions are very tuned in to the market and to the needs of their depositors," said Dan Geller, executive vice president of MRI. "If, as the analysis points out, they re-priced their 12-month 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."

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