SAN ANSELMO, Calif.-A new report from Market Rates Insight shows that unemployment and deposit rates have a strong correlation. The survey concluded that rates drop 49 basis points for every 1% increase in national unemployment. In Jan. 20005, unemployment sat at 5.2% and the national deposit rate was 2.63% and when unemployment improved to 4.2% in Mar. 2007, the deposit rate soared to 4.25%. But when unemployment skyrocketed to 9.8% in Sept. 2009, deposits dropped like a stone to 1.55%.
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The full report can be viewed at the following url: http://marketratesinsight.com/docs/sa10.27.09.pdf
