...Pushing Up CD Rates
WASHINGTON - (05/03/05) -- Credit unions have been steadilyraising the rates they pay on certificate products of allmaturities in response to the Fed's hiking of short-term rates,even though they remain reluctant to lift the rates they pay oncore savings products. Data compiled by DataTrac Corp. shows thataverage rates paid on three month CDs have risen since last year by75 basis points to 1.9%; for six months by 59 bps to 2.33; for oneyear by 108 bps to 2.82%; for two years by 56 bps to 3.29%; threeyears by 81 bps to 3.65%; four years by 71 bps to 3.95%, and fiveyears by 59 bps to 4.29%. But average rates paid by credit unionson regular share accounts remain stuck near all-time lows of just0.77%; while share draft (checking) rates hover just above a recordlow of 0.44%; and the average paid on money market funds remains atonly 1.14%. DataTrac follows rates for 8,000 financialinstitutions, including 1,000 credit unions.