Record low interest rates are hell on savers and a boon to borrowers — and the latest trend is still decidedly down.
Fear that Spain could require a bailout sent the yield on the benchmark 10-year Treasury note to new all-time lows in the past week. Bond prices and yields move in opposite directions, so the panicked rush into safe-haven U.S. government debt caused the 10-year to trade as low as 1.379 at one point during Wednesday’s session.
The knock-on effects have rates for everything from money markets to mortgages sounding the depths, too.
Investors have lots of cash parked on the sidelines — but they’re getting nothing for it. The national average interest rate on a money market account stood at 0.48% as of July 25, according to data from Bankrate.com.
Even a jumbo money market account yields only 0.66%. Factor in even muted inflation, and that comes to a negative return. Oof!
Here are rates on other popular savings products as of July 25, according to Bankrate:
- National Average Rate on Interest Checking Account: 0.56%
- Best Rate on Savings Account: 1.05% (CIT Bank [NYSE:CIT], $25,000 minimum)
- Best Rate on 1-Year CD: 1.1% (CIT Bank, $25,000 minimum)
- Best Rate on 3-Year CD: 1.42% (CIT Bank, $1,000 minimum)
- Best Rate on 5-Year CD: 1.75% (Discover Bank [NASDAQ:DFS], $2,500 minimum)
- Best Rate on 5-Year Jumbo CD: 1.75% (Discover Bank, $100,000 minimum)
On the other hand, if you can qualify for a loan, there’s no better time to borrow. Mortgage rates are setting new record lows seemingly every other week.
Here are the average national rates offered on popular loan products as of July 25, according to Bankrate:
- 30-Year Fixed Mortgage: 3.54%
- 15-Year Fixed Mortgage: 2.96%
- 5/1 Adjustable-Rate Mortgage: 3.02%
- 30-Year Fixed Mortgage, Refi: 3.51%
- $30,000 Home Equity Line of Credit: 4.53%
- $30,000 Home Equity Loan: 5.62%