US Banks: 3Q26 Quarterly Deposit Pulse

Citi Research introduces its Quarterly Deposit Pulse, focusing on US Banks. Following two years of sequential compression tied to expectations of a prolonged Fed cutting cycle, CD pricing across the 20-MSA panel troughed in late 1Q26 and has risen steadily since, consistent with the market now pricing in multiple hikes over the next year rather than further cuts. The panel-wide average CD rate rose approximately 12bps over the past six months. Charlotte and Raleigh were the most competitive markets, each posting a 31bps six-month increase in deposit rates paid, consistent with the sustained de novo expansion strategies of Fifth Third Bancorp (FITB) and Huntington Bancshares (HBAN) across North Carolina. Chicago is the least competitive market, paying the lowest average deposit rate of any MSA in the panel (0.85%) with no material movement across any time horizon;