Bank deposit rates seem poised to rise based on several economic trends, including a stronger stock market, the end of the Federal Reserve’s mortgage security buyback program, and higher Treasury bond rates (to attract more buyers).
But one factor that isn’t getting a lot of attention is the price of oil. Historically, the higher the price of oil, the higher interest rates go.
Oil has traded as high as $87 in recent weeks, and Goldman Sachs predicts that the price of a barrel of oil will rise above $100 by 2011. But the International Energy Agency estimates that oil could hit $100 as soon as this year.
So, one good rule of thumb in tracking bank rates is to follow the price of a barrel of oil. These days those prices are trending upward.
Now, on to this week’s deals.
As rates start to rise, we’re seeing more decent bank deals. Let’s start this week with a good credit card deal from American Express (Stock Quote: AXP), which is offering free access to your Experian (Stock Quote: EXPN) credit score (but only if you’re an American Express cardholder).To get the deal, log in to your American Express account on the link below. You can also find the deal at on your Amex account Web page, under “Card Options.”
The promotion is tied to Amex’s CreditSecure program, and it doesn’t require you to sign up for the program — even for a trial period — which is nice.