Illinois Community Banks CD Rates Higher than Overall National Average

By Rica Dela Cruz and Syed Muhammad Ghaznavi, Market Intelligence, S&P Global

The Illinois community bank average rate on one-year CDs is higher than the overall state average rate of 0.66% and the overall national average rate of 0.88%. Although the average rate community banks in Illinois pay on one-year certificates of deposit has increased, it is below the national peer community bank average.

As of Dec. 2, the state's community banks saw the rate on one-year CDs rise 15 basis points to 0.92% from the previous month, while the community bank national average increased 20 bps to 1.14%, according to an S&P Global Market Intelligence analysis. The Federal Reserve has been raising rates at the quickest pace in 30 years in an effort to fight inflation, but U.S. banks have been increasing deposit rates at a slower pace relative to the last tightening cycle.

Change in interest rates since November at 15 largest community banks in Illinois

Used car loans at Illinois community banks

The average rate Illinois community banks offer on 36-month used car loans stood at 5.62% as of Dec. 2, which is below the national community bank average of 5.76%.

In the third quarter, U.S. banks' collective auto loans grew to $550.52 billion sequentially and yearly. Auto loan delinquencies at U.S. banks also rose for the third-straight quarter, inching closer to pre-pandemic levels.

Mortgage rates largely similar

The 30-year fixed mortgage rate average at Illinois community banks was on par with the national average rate of 6.64%, slightly higher than the state average and the national community bank average of 6.63%, and higher than the state credit union average of 6.51%. The national credit union average rate was 6.73%.

The state community bank average rate rose 10 basis points from the previous month. Meanwhile, the state average rate slid 7 basis points and the national average rate fell 11 basis points.