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Posts tagged with "CDs"


Interest rates and rate floors: survive and thrive in 2020

Last year, when rates were rising, Deluxe warned that banks should learn from the 2008 financial crisis that rate cuts are not always predictable, and can be devastating to earnings. And at the beginning of this year, when interest rates were fluctuating unpredictably, Deluxe wrote about structural factors placing pressure on banks’ margins. In both…

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Another drop in interest rates – is the end nigh?

Around Halloween, perhaps to scare all of the bankers out there, the Federal Reserve dropped rates again, this time by 25 basis points to a range of 1.5% to 1.75%. The widely expected move was the third such drop in as many months. With little wiggle-room remaining this looks like the last drop for a…

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Rates are falling. Margins Are Shrinking. Why, and What Next?

Last month we wrote about an upcoming cut in interest rates. At the time, we wrote about what financial institutions—especially smaller institutions—should expect. A couple of days later the Federal Reserve announced the first target Fed Funds rate cut in a decade. So now we have some clarity—what can we learn? Managing rates is a…

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Fed rates are on the rise. What does this mean for community banks and credit unions?

We’ve all been anticipating it, and now it’s likely to come down the pike this week. The Federal Reserve is set to raise the target interest rate to above the rate of inflation for the first time in the better part of a decade. The Fed rate hikes have been happening gradually, steadily since 2015….

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Does Brand Trump Rate in Magazine Ads?

With rare exception, it’s extremely important to show the rate when promoting savings accounts and CDs. In fact, you might say it’s mandatory as the rate is usually the offer…as it should be. Of course, when using rate as your offer, it had better be a market-leading rate to give your bank or credit union…

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Out-of-Whack Priorities

By now it’s obvious that the amount of outstanding student loan debt presents a major problem for the American economy. Which means it’s a major problem for banks and credit unions. And the amount owed continues to grow. Most of us have read one or more news stories warning us that the total amount of…

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Who Needs Ally Bank’s 11-Month, No Penalty CD?

Is there really a need for an 11-Month, No Penalty CD? I’ve been pondering the answer to this question off and on since coming across Ally Bank’s latest full-page ad in the current issue of Fortune magazine. Here’s the ad. So far, the only answer that comes to mind is I can’t think of anyone…

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