rates have continued to nudge down a bit. Nationally the average bank rate on 12-month CDs is down in the area of 1.00%. They could get lower before they go higher.
Because of our nationwide membership we regularly look at CD rate average in various states. We’ve never seen so much variance in rates from one state to another and even within states. Individual state averages on 12-month bank CDs range from a low of 0.60% to a high of 1.40%. Finding a good CD rate depends largely on where you live.
The downward pressure on savings rates appears to be a combination of factors that include: high levels of existing deposits and slow loan demand; pressures on earnings; changes in Fed rules on overdraft programs that will cut into fee income; anticipation that rates will begin rising and an incentive to lock in lower cost funds now; and alternative sources of funds for banks at lower rates.
Four Points offers Time Certificates at the higher end of the Omaha CD market, so you should find credit union rates attractive. We also offer rates on regular savings that are near the average on bank CDs and this is where most of our members put their credit union savings.
A tip on existing CDs: look closely at rates and alternatives before you let maturing CDs automatically renew.
