Interest rates ticked up over the last month, but don’t tell that to savers. Yields on money markets, savings accounts and certificates of deposit were almost entirely unchanged from July, while borrowing costs on a number of popular products rose.
The yield on the benchmark 10-year Treasury note went nearly vertical since late July, or shortly after European Central Bank President Mario Draghi said he would do “whatever it takes” to save the euro. (Bond prices and yields move in opposite directions.)
A month ago, the panicked rush into safe-haven U.S. government debt caused the yield on the 10-year Treasury to sound all-time lows, dipping below 1.4% on an intraday basis.
But ECB promises and some better U.S. economic data helped fuel a reversal of that trend, sending the 10-year yield up above 1.8% at one point in August.
Unfortunately, if predictably, the knock-on effects of that rise in rates benefited banks more than customers.
As we noted in July, investors have lots of cash parked on the sidelines — but they’re still getting nothing for it. The national average interest rate on a money market account stood at 0.49% as of Aug. 22, up from 0.48% as of July 25, according to data from Bankrate.com.
Even a jumbo money market account still yields only 0.66%, which is unchanged from July’s reading.
Here are rates on other popular savings products as of Aug. 22, according to Bankrate:
- National Average Rate on Interest Checking Account: 0.57%, up from 0.56% a month ago
- Best Rate on Savings Account: 1.05% (CIT Bank [NYSE:CIT], $25,000 minimum), no change
- Best Rate on 1-Year CD: 1.1% (CIT Bank, $25,000 minimum), no change
- Best Rate on 3-Year CD: 1.42% (CIT Bank, $1,000 minimum), no change
- Best Rate on 5-Year CD: 1.75% (Discover Bank [NASDAQ:DFS], $2,500 minimum), no change
- Best Rate on 5-Year Jumbo CD: 1.9% (CIT Bank, $100,000 minimum), up from 1.75% last month (Discover Bank, $100,000 minimum)
Meanwhile, rates on the most common mortgage and home equity products rose substantially from last month.
Here are the average national rates offered on popular loan products as of Aug. 22, according to Bankrate:
- 30-Year Fixed Mortgage: 3.59%, up from 3.54% a month ago
- 15-Year Fixed Mortgage: 2.93%, down from 2.96% a month ago
- 5/1 Adjustable-Rate Mortgage: 2.89%, down from 3.02% a month ago
- 30-Year Fixed Mortgage, Refi: 3.56%, up from 3.51% a month ago
- $30,000 Home Equity Line of Credit: 4.57%, up from 4.53% a month ago
- $30,000 Home Equity Loan: 5.63%, up from 5.62% a month ago