Wednesday, March 21, 2018

Bank Rates Inching Up

Now that the Fed has begun raising interest rates, it seems that banks are, too. The average rate on a one-year certificate of deposit rose to 0.49 percent last week, according to Bankrate.com. While that’s tiny by historical standards, it is the highest that figure has been in more than seven years.

Banks over the past year have already raised the interest paid on deposits held by businesses and affluent individuals who demand it. But higher CD rates are intended to lure in average customers.

Still, banks aren’t moving en masse to raise rates. The average rate on a money-market deposit account started at 0.10 percent before the rate-raising cycle and is now still at just 0.15 percent, Bankrate.com says.


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