Search
 

Yield Span Shrinks Between Short, Mid-Term CDs

Credit unions may have noticed that the yield differentiation between short- and mid-term certificates of deposit at banks shrank over the past year.

By Michelle A. Samaad | Updated on March 22, 2011

Credit unions may have noticed that the yield differentiation between short- and mid-term certificates of deposit at banks shrank over the past year.

According to research firm Market Rates Insight, in March 2010, the interest rate difference between the three-month and the 12-month CD was 44 basis points. Today, the variance decreased to 28 basis points. The same rate variance decrease occurred between the 12-month CD and the 24-month CD. The yield variance between the 24-month CD and the 36-month CD decreased by eight basis points from 38 basis points last year to 30 basis points today.    

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:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 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.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.