San Anselmo, CA, July 16, 2009 --(PR.com
)-- A new analysis report from Market Rates Insight (MRI, www.marketratesinsight.com), a leading research firm that tracks rates for deposits, loans, and fees to help financial institutions price with precision, shows that the average rate for CDs and Money Markets has constantly dropped since the beginning of 2009, and by mid year has reached a new low of 1.70.
“The question on every banker’s mind is when it comes to rates is - How low can it go?” said Dr. Dan Geller, Executive Vice President at Market Rates Insight. “Estimates are that deposit rates are nearing the point of risk/return equilibrium, which means that at that point depositors will start looking for higher returns on their money even if it means greater risk.”
The national average APY has been in steady decline over the past six months. The national APY has been dropping at a rate ranging from one to five basis points weekly, with an average drop of three basis points every week. It won’t be possible to gauge the impact that these low rates may have had on banks’ balances until the September/October time period, when the FDIC will publish cumulative balance reports as of June 2009.
Copies of the research report are available online at www.marketratesinsight.com.
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.
Dr. Dan Geller
Market Rates Insight
Market Rates Insight