5 Answers | Add Yours
Right now interest rates are being held down by the fact that the Federal Funds rate is targeting 0% Normally banks are able to get money from a central bank or from deposits at a low interest rate and then lend them out at higher interest rates and make money on the difference.
If you search rates right now you might find things like:
checking accounts interest rates (if they are paying interest) below 1% and often very close to 0%.
Certificates of Deposit between .75% and 2% though you might be able to find some slightly higher, I've been unable to find anything higher than 2.5%
Savings accounts also are offering very low interest because banks cannot charge very high interest on their other products like mortgages or business loans so they have to keep the interest they are paying out low as well. You might be able to find a savings account that is paying between 1 and 2%.
An account in the bank is a history of transactions between the customer and the bank.The type of accounts offered may vary from bank to bank. Here are some popular types of accounts:(1) Current account , which normally allows an unlimitted transactions and offers no interest or very low interest. The transactions could be through cheques. (2) Saings account which is aimed at generation and mobilising savings.There could be restrictions for the number of with drawals for a time period. Interest is paid for the the money deposited at a rate higher than that of current account. (3) In money market account , a minimum balance is required to be maintained . The number transactions and withdrawals has restriction. Interest is higher than saving account. (4) The certificate of accounts or a fixed deposite is the one which is deposited by the customer for a period for an agreed interest during which time money time customer cannot wihdraw money. After the maturity period customer recieves the money along with the interest. Some banks allow withdrawal before maturity with penalty.
can u plese tell the current rates of interest offered in each type of bank account??
deir r several bank acc. bt main r reccuring , fd and rd......n visit different bank sites to know de rate of interest offered
We’ve answered 319,197 questions. We can answer yours, too.Ask a question