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Rates Rumble But Which Way?

Looky, looky, looky, 6mo CD to 60mo CD rates fall.
Savings, Checking, Money Market and 1mo  & 3mo CD rates stay the same.
Credit Union double all the rates of Banks, Thrifts & Fintech,
My Oh My Chair Jay Powell what is the deposit marketplace telling you?
Questions, comments and more welcomed.

Some Deposit Rates Fall, Yet Some Rise

Savings Rates the Same – Long Term Deposit Rates Fall – Some Rates Rise

Some Deposit Rates Fall, Yet Some RiseLake Forest, IL (July 9, 2019)

The last decline in deposit rates was August 2013. So, it has been almost six years since deposit rates h

Rates Rumble But Which Way?

ave fallen. Or, more importantly, six years of steady deposit rate increases has ended.

The recent rate drops only impacted long-term deposits with rates on savings and short-term money remaining unchanged.  At $2.8 Trillion, long-term deposits only account for 23.8% of all deposits.  The rates on the remaining $9.3 T of deposits remain the same.

In response to the recent Federal Open Market Committee (FOMC) meeting and subsequent notice on maintaining the basic Fed Funds rate at 2.40%, long-term CD rates (Certificate of Deposit), six months or longer, have started to decline.

“While the fall in maturities seems slight from 1 basis point (BP) to 4 BP,” notes Michael Moebs, CEO & Economist of Moebs $ervices, an economic research firm, “this is actually quite substantial because it ends a 6-year rise in CD rates. Most notably it signifies a switch in rate direction by the marketplace.”

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Written By: m.moebs
Date Posted: 7/9/2019
Number of Views: 502