by Dan Burrows | January 29, 2014 1:59 pm
The market wasn’t the only thing to tumble in January — just look at current interest rates. But the knock-on effects for popular savings and loan products broke in favor of borrowers, not the lenders who charge them … meaning the best interest rates just got a little better.
The yield on the benchmark 10-year Treasury note rose steadily in December to peak briefly above the 3% threshold early this month. But as current interest rates show, it’s been all downhill from there.
A sense of fear and risk returning to the market boosted demand for government debt, pushing interest rates on the 10-year Treasury back down to 2.74% — a two-month low — by January’s end. (Bond prices and yields move opposite one another.)
While the best interest rates on popular savings products didn’t budge, the drop was great news for anyone shopping for a mortgage. On balance, the cost of borrowing money fell to a greater degree than what banks pay for deposits. That helps borrowers more than banks, while savers escaped losing some hard-won gains — at least for a month.
Check out our roundup of the best interest rates, current mortgage interest rates and more:
The national average interest rate on a money market account fell to 0.4% as of Jan. 29 from 0.45% a month ago, according to data from Bankrate.com (RATE).
Elsewhere, yields on savings products went nowhere after edging up a month ago. (Indeed, December marked the first rise in yields on savings and money market accounts in six months.)
Here are the best interest rates (shown in annual percentage yields) on some popular savings products (with a minimum deposit of less than $10,000, except for jumbo CDs) as of Jan. 29, according to Bankrate:
At the same time that savers were spared rate pain, borrowers caught a break from rising mortgage rates, which declined significantly over the past month. Here are the current mortgage interest rates (overnight national average) on popular loan products as of Jan. 29, according to Bankrate:
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