US Households Lift Large CDs to Record $2.52 Trillion as Inflation Tops Deposit Yields
Updated
Updated · WOLF STREET · Jun 12
US Households Lift Large CDs to Record $2.52 Trillion as Inflation Tops Deposit Yields
2 articles · Updated · WOLF STREET · Jun 12
Summary
$2.52 trillion in large time-deposits sat at US banks in April, up $49 billion from March and $169 billion from a year earlier, extending a $1.11 trillion rise since Fed hikes began in March 2022.
Banks have started offering better CD rates again—especially brokered CDs above 4% APY—even as many March-to-May deposits still delivered negative real returns because inflation climbed past 4.2% in May.
$5.21 trillion in household money market funds in Q1 showed the same pattern: balances rose $89 billion from the prior quarter and $626 billion year over year despite yields around 3.5%, now below inflation.
Smaller CDs under $100,000 also ticked up to $1.02 trillion in April after six straight monthly declines, suggesting even modest yield increases are pulling cash back into low-risk savings products.