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Posts tagged with "CDs"


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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Newspaper Ads — The Good, The Bad, and The Ugly

The first thing I do when I get a newspaper in my hands is to page through it looking for all the bank and credit union ads. Yes, I’m a bit strange. In fact, one of my biggest thrills is finding an out-of-area newspaper left behind at the local coffee shop. I can’t help myself…

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Losing Customers Over Near Zero Interest Rates

Here’s a question I’ve been pondering lately: Are near zero interest rates on deposits damaging the relationship banks and credit unions have with their customers? I believe the answer to be a definitive YES. Historically, people looked to neighborhood banks as a safe place to store the money they are saving for future needs.  Because…

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