SAN FRANCISCO–For the first time in history, the national average rate on a six-month certificate of deposit is the same as the 60-month CD, 1.38%, a new analysis reveals.
“And for the first time ever, domestic balances of short-term CDs, up to one year, are projected to top $2 trillion in June,” said Dr. Dan Geller. “The uncertainty and the rising money anxiety surrounding inflation and interest rates are impacting consumer behavior, such as shifting deposits to money market accounts or to short-term CDs of less than one year.”
Geller is the creator of the Money Anxiety Index published in the Journal of Applied Business and Economics and also heads Analyticacom, LLC.
According to Geller, the index is highly reliable because it measures the level of financial anxiety of people based on what they actually do with their money rather than how they respond to consumer confidence surveys.
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