Do you ever wonder how your interest rate is calculated when you apply for a loan? To better understand how borrowing on loans and credit cards works, it is best to know how to factor interest rates into the equation.
Interest rates are also used to determine the rate of return on investments. In other words, the pay-off when your Certificate of Deposit(CD) or Treasury Bill matures depends on interest. Both CDs and Treasury bills are sound investments that can compliment your regular savings account.
For more basics on financial tools see last week’s interest rate round up here. Below is a round up of this week’s interest rates from the Federal Reserve.
News this week in rates:
On Wednesay, Federal Reserve Chairman Ben Bernanke made his semiannual testimony before congress. According to the chairman, interest rates will remain low – near to zero. However, as the U.S. economy rebounds from a recession, the Fed will continue to increase rates as it did with the discount rate just last week.
Don’t quite have the funds available to meet a CD deposit minimum? Not to worry, a regular savings account can still offer competitive interest rates. Use BillShrink to open a savings account or CD today, and begin saving for your future!
This week is America Saves Week, what are you saving toward? Share your story below…