CD rates Blog

Finance Blogs » CD rates Blog » Buyers don’t chase promo CD rates

Buyers don’t chase promo CD rates

By Allison Ross ·
Saturday, July 19, 2014
Posted: 6 am ET

© niroworld/Shutterstock.comBanks want your money.

But in this low-interest-rate environment, convincing consumers to park their money in a bank's certificate of deposit is a hard sell.

Even promotional rates on yield don't seem to be working, recent analysis by Dan Geller and his team at Market Rates Insight found.

In the past 12 months, the average percentage yield on special offers on long-term CDs (more than three years) increased 75.7 percent, but balances fell by 5.9 percent, Geller, the executive vice president of MRI, says.

Similarly, promotional CDs with terms of one to three years saw an average increase of 15.7 percent on promotional CD rates, but deposits into such CDs fell 2.3 percent.

"Promotional rates are not very effective in attracting new money or in shifting balances to long-term accounts," Geller wrote in a recent article. He said certain markets or banks may see gains from offering promotional rates, but that overall, "nationally, the specials aren't working in the current rate environment."

Have you seen any good promotions for CDs? Have any tempted you enough to deposit money into a CD lately?

If you are looking for the best CD rates, it's a good idea to shop around. Bankrate reporter Sheyna Steiner has some tips on how to find the best CD rates in your area.

Follow me on twitter: @allisonsross

Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
July 24, 2014 at 1:04 pm

The headline made me think I was being discouraged from chasing a promo rate - I haven't chased one since e-trade was desperate for cash in 2007, otherwise the rates are just too low to worry about.