SAN ANSELMO, Calif. -Driven by consumer demand, banks have begun adding more short-term deposit products over the past 60 days, according to a new analysis from Market Rates Insight, a research firm that tracks rates for deposits, loans, and fees for financial institutions.
The company said its research has found the number of short-term CD products has increased nationally by 1.3% since July 3. At the same time, the number of long-term CD products (with terms over one year) has decreased by 1.3% during the same period.
"The shift in the availability of short-term versus long-term CDs indicates that demand for short-term deposit products is increasing relative to long-term CDs," MRI said. "Short-term CDs are typically used as a temporary 'holding place' for money until confidence in long-term prospects of the economy improves."
The analysis shows that the percentage of short-term CDs offered nationally has increased from 51.4% to 52.77% , and at the same time, over percentage of long-term CDs offered nationally has decreased from 48.6% to 47.23 during the same time period.
