BEST DEPOSIT RATES
|Online Saving Accounts||1.00% APY|
|1 Year Online CDs||1.11% APY|
|3 Year Online CDs||1.50% APY|
|5 Year Online CDs||2.30% APY|
|Online Checking||0.80% APY|
|Rewards Checking||5.09% APY|
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Rates and Information to Help You Save & Borrow
AVERAGE LOAN RATES
|30 Year Fixed Mortgage||4.27% APR|
|15 Year Fixed Mortgage||3.51% APR|
|5 Year ARM||2.96% APR|
|Home Equity Line||4.36%|
|10 Year Home Equity||5.65%|
|3 Year Auto Loan||3.15%|
INTEREST RATE ANALYSIS
By Sol Nasisi
July 3, 2014 - The Labor Department reported strong employment growth of 288,000 jobs in June and a revised 244,000 gain the prior month. The large growth in jobs helped push the unemployment rate to 6.1%, the lowest in almost six years. Ten year treasury interest rates rose to a two-month high as bond traders speculated the strong jobs numbers will eventually translate into inflation. This continues the up-and-down flow of the economy, with negative growth in the first quarter rebounding to what will be stronger growth in the second and third quarters. Until we can string more than two or three months of this together though, it's hard to see this as more than just the normal oscillations we've experienced over the last five years. If the July numbers are higher or on par with June, that could be telling that the economy is finally beginning to break its oscillatory pattern and that interest rates may begin to move higher.
On a related note, we've seen several online banks raise their CD rates over the last month. Average 3 and 5 year CD rates continue to move up. At the same time, mortgage rates have dropped over the past two months. For mortgages, the spike that we saw when the Fed began to taper is coming down.
My outlook: Online savings account rates may increase by 20-30 percentage points by the end of 2014. I project the highest online savings account next year will yield 1.75% APY. Short term savings rates will edge up slightly but longer term CDs (3-5 year) will continue the trend we have seen over the past six months and continue to move up. I expect we'll see the biggest increases in the longer duration CDs.
You can read more of my thoughts on bank rate trends on my Bank rate update.
CD & ONLINE SAVINGS RATE TRENDS
Information to Help You Save
- How Much of Your Money Should Be in Cash?
- Compare Savings Accounts to Other Income Generating Investments
- The Difference Between Banks and Credit Unions
- How to Decide Whether to Open a Shorter or Longer Term CD
- Rewards Checking Accounts - Free High Yield Checking with Activity Requirements
- See All Savings and CD Articles
Information to Help You Borrow