High-Rate CD Attrition May Be Signaling What’s to Come

With the Federal Reserve initiating the falling rate cycle in September with a decisive 50 bp rate decrease, the era of banks offering high-rate 500bp+ CDs is quickly drawing to a close. FIs have already begun decreasing CD rates across the board, and maturing CDs that were booked at 5.00%+ are rolling into significantly lower rates today. For bankers, the question becomes how many of those high-rate CDs will stay put and how many will leave. 

Data from Curinos’ September Retail Deposit Analyzer suggest an uptick to the latter: Attrition rates for high-rate CDs increased to 18% from a stable 15% in prior months (see chart). This is in contrast to customers holding maturing CDs at lower rates, whose behavior has remained largely unchanged. But with rates likely to decrease further in the coming months, we’ll be monitoring closely to see whether the increased attrition of higher- rate 500bp+ CDs is a harbinger for the rest of the CD book once they mature into a notably lower-rate CD. 

One thing is clear: The right data-driven analytics will greatly benefit pricing decisions that strike the right balance between lowering rates for different cohorts of CD holders in the coming months to maintain margin, without triggering a spike in attrition.

CDs maturing at 500+ bp saw an uptick in attrition in September, reflecting greater rate sensitivity.

CD Roll | 0-499 bps | Aug ’24 – Sep ’24
CD Roll | 500+ bps | Aug ’24 – Sep ’24

Source(s): Curinos Consumer Deposit Analyzer. | Notes: Consumer balances only. Branch Banks only. Simple averages displayed.

Latest Insights

According To The Data, Insights

Brokerage Cash Sweeps: No Longer Just the Leftovers

The traditional rule-of-thumb has been that wealth clients hold 5-7% of ...

Curinos Perspectives, Insights

Home Equity Lending 2015 vs. 2025—5 Takeaways

From Home Equity Lending: 2015 vs. 2025 – a Decade of Evolution, Déjà vu...

Curinos Perspectives, Insights

Curinos Perspective: Curinos at CBA LIVE 2025 – 7 Takeaways

Consumer Bankers Association hosted its 16th annual CBA LIVE, in Orlando...

Want to go further?

Contact us to learn more about how Curinos can help you navigate today and prepare for tomorrow.

Need to contact a specific team?

Sales Inquiries:
Sales@curinos.com

Accounts Payable Inquiries:
CurinosAP@curinos.com

Media Inquiries:
Curinos@5WPR.com

Need to contact a specific team?

Sales Inquiries:
Sales@curinos.com

Accounts Payable Inquiries:
CurinosAP@curinos.com

Media Inquiries:
Curinos@5WPR.com

Need to contact a specific team?

Sales Inquiries:
Sales@curinos.com

Accounts Payable Inquiries:
CurinosAP@curinos.com

Media Inquiries:
Curinos@5WPR.com

Need to contact a specific team?

Sales Inquiries:
Sales@curinos.com

Accounts Payable Inquiries:
CurinosAP@curinos.com

Media Inquiries:
Curinos@5WPR.com

Need to contact a specific team?

Sales Inquiries:
Sales@curinos.com

Accounts Payable Inquiries:
CurinosAP@curinos.com

Media Inquiries:
Curinos@5WPR.com

Let's start a conversation...

Maximize your small business
lending performance.

Privacy Overview

We use cookies to help provide you with the best possible online experience. Please read our Privacy Policy and Terms & Conditions for information about which cookies we use and what information we collect on our site. By continuing to use this site, you agree that we may store and access cookies on your device.