Certificate of Deposits
CERTIFICATE OF DEPOSITS
Amount out standing 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 3,545.2 | 3,910.7 | 4,060.1 | 3,267.8 | 2,117.6 | 1,544.3 | 1,014.9 | 536.0 | 195.9 | 50.6 | 23.0 |
if we observe the above graph from 2003 to 2013 the outstanding amount has been increasing year on year. Initially people don’t have enough knowledge on the certificate of deposits. Then people realized the importance of saving the money and started buying CD. One more reason why people are interested in buying in certificate of deposits is, people have turned to risk averse due to high volatile market, changing inflation rate. More over the main advantage of Certificate of Deposits is the safety and the ability to know the future cash inflows and will be able to generate more than the savings account.
AVERAGE MINIMUM INTEREST RATE YEAR WISE 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 8.05 | 8.8 | 8.51 | 5.43 | 4.29 | 8.31 | 7.79 | 5.76 | 4.69 | 3.95 | 4.46 |
With the change in market conditions the rate of inflation is also changing rapidly. The minimum interest rate year wise is also changing accordingly. If the certificate of deposits gives less interest rate compared to the savings account or any other account obviously people will not buy these and the demand also decreases. Demand and supply of the certificates of deposits also decides the interest rates.
AVERAGE MAXIMUM INTEREST RATE YEAR WISE 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 9.55 | 9.94 | 10.18 | 7.79 | 8.64 | 11.08 | 10.33 | 8.40 | 6.88 | 5.78 | 6.75 |
This is the maximum rate of interest certificate of deposits paid during the year. If the lender is in need of money and the demand for the certificate of deposits is low then in order to create the demand the lenders have to pay higher interest rate until and unless lenders provide more interest there wont be any demand in the market. And
Amount out standing 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 3,545.2 | 3,910.7 | 4,060.1 | 3,267.8 | 2,117.6 | 1,544.3 | 1,014.9 | 536.0 | 195.9 | 50.6 | 23.0 |
if we observe the above graph from 2003 to 2013 the outstanding amount has been increasing year on year. Initially people don’t have enough knowledge on the certificate of deposits. Then people realized the importance of saving the money and started buying CD. One more reason why people are interested in buying in certificate of deposits is, people have turned to risk averse due to high volatile market, changing inflation rate. More over the main advantage of Certificate of Deposits is the safety and the ability to know the future cash inflows and will be able to generate more than the savings account.
AVERAGE MINIMUM INTEREST RATE YEAR WISE 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 8.05 | 8.8 | 8.51 | 5.43 | 4.29 | 8.31 | 7.79 | 5.76 | 4.69 | 3.95 | 4.46 |
With the change in market conditions the rate of inflation is also changing rapidly. The minimum interest rate year wise is also changing accordingly. If the certificate of deposits gives less interest rate compared to the savings account or any other account obviously people will not buy these and the demand also decreases. Demand and supply of the certificates of deposits also decides the interest rates.
AVERAGE MAXIMUM INTEREST RATE YEAR WISE 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 9.55 | 9.94 | 10.18 | 7.79 | 8.64 | 11.08 | 10.33 | 8.40 | 6.88 | 5.78 | 6.75 |
This is the maximum rate of interest certificate of deposits paid during the year. If the lender is in need of money and the demand for the certificate of deposits is low then in order to create the demand the lenders have to pay higher interest rate until and unless lenders provide more interest there wont be any demand in the market. And