CD rates Blog  Finance Blogs » CD rates » CDs may lead savings
rate recovery  CDs may lead savings rate recovery  By Claes Bell
· Tuesday, December 18, 2012 Posted: 11 am ET  There's not much
good news out there for investors in certificates of deposit
these days. CD rates currently sit at record lows. Rates on one-
year CDs have been below 1 percent since September 2009.  But,
there's a little bit of good news. When deposit rates do rise,
CDs will probably lead the pack, says Dan Geller, executive vice
president for Market Rates Insight, a banking industry research
firm in San Anselmo, Calif.  Deposit rates are largely driven by
banks' need for cash. When the demand for new loans is low, as
it is now, banks don't really need a lot of cash on hand, so
they're not willing to pay a lot for deposits.  However, at some
point, lending will pick up and deposit rates will rise. When
that happens, CDs will rise more quickly, again commanding a
premium over liquid savings accounts that's been almost
nonexistent in rece