Top 10 Factors Affecting Interest Rates For Savings Accounts In US
1. Monetary Supply And Demand- The interest rates for savings accounts can be affected by the supply and demand of the currency in circulation, and more demand and less supply can lead to higher rates being offered.
2. Inflation- Even the best online banking choices will be affected by inflation, as well as the opposite which is deflation.
3. Current Interest Rates- The current interest rates being offered will have an affect on the future rates you will be given. The interest type you are currently receiving is another factor involved.
4. Central Bank Policies- The policies set by the Central Bank will help determine the interest rates for savings accounts. This entity is responsible for the economic well being of the USA, as well as numerous other financial duties.
5. The Bank Chosen- Some banks offer higher fixed rate savings accounts than others, and your choice of bank is one factor that will determine the interest rate that you will get for any funds in the account.
6. The Demand For Credit- The best savings account interest rates are always sen when the demand for credit is high, and when credit demand is low then interest rates tend to decrease as well.
7. The State Of The Economy- The economic state of the USA will help determine the interest rates for savings accounts. A recession will cause these rates to decrease, and economic prosperity will cause the rates to go up.
8. Current Investment Levels- Whether capital is placed in business savings accounts or invested into the economy is one factor that will affect the rates seen with savings accounts. If business owners hoard capital instead of using it for investments this can be a bad sign for interest rates.
9. The Expectation of Economic Growth- Interest rates for savings accounts have a tendency to increase when economic growth is predicted.
10. The Level of Competition among Financial Institutions- The best savings accounts and interest rates will be seen when financial institutions must compete for consumer business.