MRI In the News
FOR IMMEDIATE RELEASE
New Research from Market Rates Insight Indicates Interest Rates on Deposits Not Likely to Increase in Remainder of 2009.
National Average Rate for CDs and Money Markets Shows Loss of 27% through August Compared to 26% in Full Year 2008, and Without Cyclical Lift in Q3
SAN ANSELMO, Calif. (September 8, 2009) – A new analysis from Market Rates Insight (MRI, www.marketratesinsight.com), reveals that the national-average rate for deposits is not expected to repeat its upward pattern in the third quarter of 2009, as it did in 2008.In 2008, the national-average rate dropped a total of 87 bps, from a high of 3.40 in the beginning of the year, to a low of 2.53 at the end of the year. In 2008, the national-average rate had a cyclical pattern. It went down in the first and second quarters, but increased by as much as 27 bps during the third quarter, and dropped again by 45 bps in the fourth quarter of 2008.
Conversely, in 2009 for the year-to-date, the national-average rate exhibited a sharp decline of 65 bps from 2.27 in the beginning of the year to 1.62 at the end of August. During 2009, the national-average rate did not exhibit any cyclical or upwards pattern.
“The different in the fluctuation pattern between 2008 and 2009 tells us not to expect an upwards trend in deposit rates during the third quarter of 2009” said Dr. Dan Geller, Executive Vice President at Market Rates Insight, “We are likely to finish the year with flat or even lower rates on deposits.”
The complete analysis can be viewed on the Market Rates Insight website 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.
Contact:
Dr. Dan Geller
Market Rates Insight
415-448-8813
Dan.Geller@MarketRatesInsight.com
Tom Woolf
Market Rates Insight
(415) 259-5638
tom.woolf@marketratesinsight.com
Contact Us
To discuss how we can help your organization, call us toll-free at: 800-275-5556. Outside of the U.S. dial 415-448-8800.
