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Wealth Clients Were Late To The CD Party And Will Likely Leave Early

Wealth clients didn’t adopt CDs as quickly or as intently as their retail counterparts, and much of the money they did move could end up being a one-and-done.

More than 75% of upcoming maturities in 2024 are first-time issuances, which usually renew at a much lower rate than CDs that have renewed at least once before (see chart). But that doesn’t mean banking institutions should give up on the 9% of wealth deposit portfolios currently sitting in short-term retail CDs.  

Banks should capitalize on the high-touch, personalized engagement model that advisors have with their clients by proactively reaching out prior to maturity. While some wealth clients will want to simply roll over into another short-term CD, others seeking more liquidity (for instance, to invest in securities during an election year) may require exception pricing or promos that provide a similar yield in a wealth savings account. By making a range of deposit options available, banks have a better chance of retaining the funds while also being responsive to client preferences.

2024 Wealth CD Maturity Balances By Month

First-time issuances dominate and are much less likely to renew, but a proactive and personalized approach can help keep these deposits in house.
Source: Curinos Wealth Analyzer

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Falling CD Rates? Whew! Well, Maybe Not.

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