Consumers are wary of certain volatile, risky investments these days, especially in light of the recession. In response, many banks have begun promoting Certificates of Deposits (CDs) as safe and predictable. With interest rates held down to almost zero by the Federal Reserve Board and the equity markets viewed as too risky, CDs are being marketed as the smart choice.

In direct mail and email, we’ve seen three themes prominently marketed in relation to CDs: rates, stability and predictable returns. Citibank, for example, hit all three of these themes in an email offering a CD with an attractive APY. The email addressed the recipient as a savvy saver looking for predictable returns. Bank of America, likewise, is cross-selling a 12-month CD to checking account customers with a letter that contrasts the “fluctuating” stock market with its “reliable” CD.

In a comparable email campaign, ING promotes its CD with “a guaranteed return with no market risk” and the ability to “open online in 5 minutes.” Even State Farm has been sending direct mail that contrasts the challenging stock market with the security of a State Farm CD. That particular letter asks recipients to call a State Farm agent to “discuss your continuing plans for safely growing your savings.”

CD offers are talking about the stable and predictable returns that other investments do not have in the current economy. A large number of offers mention the economy directly. High rates are a strong competitive point for CDs and they’re where investors will find a difference between products. The latest campaigns we’ve seen offer rates above the national average, some significantly higher.

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