It once again seems like one step forward, two steps back for the economy — and for bank interest rates.
The latest example of that trend is news from the Federal Reserve that the U.S. economy is downshifting, with no guarantee that a double-dip recession isn’t looming.
The Fed also isn’t ruling out raising interest rates, which would be great news for bank rate investors. "However, members noted that in addition to continuing to develop and test instruments to exit from the period of unusually accommodative monetary policy, the Committee would need to consider whether further policy stimulus might become appropriate if the outlook were to worsen appreciably," the minutes reported.
Consequently, it’s more of the same for bank interest rates, with a low-rate environment keeping a lid on savings appreciation opportunities for investors. That once again makes it even more imperative to scour the countryside for good bank deals and cash in where possible.
Such deals are out there and we’ve found more of them this week.