Personal Finance Blog By MoneyRates - Savings Account Rates

Bank Rates Get a Setback from Bad Employment Report

June 7, 2010

A report last Friday which showed that hiring unexpectedly slowed in May dealt an immediate blow to the stock market, with U.S. equity indexes plunging by more than 3% on the day of the report's release. A more subtle -- but potentially longer-lasting -- effect of the disappointing employment report could be to keep bank [...]

When Demand for Bank Loans Picks Up, So Should Bank Rates

April 1, 2010

In the past, bank business models were fairly, even admirably simple: take in money from depositors and pay interest on savings accounts, money market accounts, and CDs, and then lend out that money at higher interest rates in the form of mortgages, consumer loans, and business loans. In the brave new 21st Century, bank business models [...]

What Are Banks Doing With All That Deposit Money?

March 10, 2010

According to the recently released FDIC Quarterly Banking Profile, bank deposits rose by 13.5 percent, or $641 billion, in 2009. Savings accounts and CDs are selling well with a public that's tired of being buried in ever-mounting piles of consumer debt. Businesses have also been putting increasing amounts of money into bank deposit accounts. Bank of [...]

Lurking Price Increases Could Spoil Higher CD Rates

March 4, 2010

Conservative investors who are hoping for higher CD rates need to be on the look-out for price increases that may be lurking just around the corner. Richard Barrington pointed out yesterday how holders of savings accounts and CDs must consider rising oil prices a threat to the value of those savings accounts and those CDs. But oil [...]

Bad News for Dollar Good News for Tomorrow's Bank Rates?

November 26, 2009

If you've got CDs, savings accounts, and money market accounts, you're likely concerned about the decline in the value of the U.S. dollar. It can be very frustrating to be not only receiving low interest rates on your savings, but also to be perceiving the value of the dollars in those deposit accounts declining. Indeed, the [...]

Bank Rates At Risk When Stock Market Falters

November 2, 2009

It was more tricks than treats for the stock market as the month of October wound down, but if bank depositors think the stock market's woes don't concern them, they may also be in for an unpleasant surprise. The Dow Jones Industrial Average had four days with losses of a hundred points or more in the [...]

The Bright Side of Savings Account Interest Rates

October 5, 2009

Treasury bond rates fell again last week, continuing a somewhat odd habit they've shown in recent months. This isn't good news for anyone waiting for savings account interest rates to rise, but there is a bright side to the story. First, about that odd habit. Last week was a bad one for the stock market, as [...]