New research from Market Rates Insight showed that banks and credit unions may be offering consumers and members the reverse of what they are demanding with CDs.
Demand for short-term CDs is down 28% but banks and credit unions added 26% more short-term CD products so far this year, according to MRI. In the first nine months of 2010, demand for three-month CDs dropped by 16% from a balance of $277 billion in January to $232 billion at the end of September.
Despite such a substantial decrease in demand, banks and credit unions increased their three-month CD product offering by 10% over the same time period, MRI found. Meanwhile, demand for CDs of three to 12 month terms dropped by 12% from a balance of $502 billion to $443 billion, yet banks and credit unions added 16% more CDs of six, nine, and 12 months terms.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
