Why are savings account interest rates still so low?
Prime has been rising quite a bit along with many of the lending interest rates, from what I've seen. Why are savings accounts still rock bottom?
- 1 decade agoFavorite Answer
When short term rates move up, banks and credit unions typically lag the market on the interest rates they pay. To get the best rates on short term investments, you should look at "Money market" accounts. They pay better rates at this time in the interest rate cycle. For instance EBAY has a money market account through its Paypal division that right now pays 5.03% interest. Minimum balance required is $1. If you are interested Google "Paypal rate" Good luck!
- hogie0101Lv 41 decade ago
If you have noticed due to competition Home Loan rates haven't risen that much so there isn't much room to raise savings unless lending income rises. Don't get me wrong banks make a killing and have plenty of profit margin, they just want more!
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- 1 decade ago
The banks want to keep there money, as simple as that. You can get CD accounts in the 5s and the average large company stock returns %11.3