Interest rates on bank deposits have been falling since August 2007 - the longest and steepest decline in the past 20 years, a banking research firm found.
Market Rates Insight, a California firm that analyzes bank pricing, reports rates have been declining for 53 consecutive months, during which the annual percentage yield fell 3.4 percent, or 85 percent in return value.
The second-longest period of declining rates occurred between November 2000 and July 2003, when the annual percentage yield fell about 2.9 percent. Historically, it has taken an average of two years for deposit rates to begin climbing again after a decline cycle, the firm found.
"The length and severity of the current decline cycle in deposit rates is an indication that the last recession was different than previous recessions in the past 20 years," Market Rates Insight executive vice president Dan Geller said.
Tuesday, January 24, 2012
Bank deposit interest rates post record decline
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3 comments:
Here is the elephant in the room:
1970's BEFORE regulations to "protect" consumers... I got 5.75% interest, compounded daily on my savings account... and banks gave away gifts to open an account!
Now, we are so "protected" that I'm lucky if I get 1-1.5% and be charged a fee!
Thanks for nothing Feds!
That's got nothing to do with it, pinhead - when the fed loans money to banks for practically nothing as they are currently, do you think you're still gonna get a 5% rate on your deposits?
People should know what they are talking about before they make comments.
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