Gap Between Banks’ Interest Rates and Savings Rates Widens
(NEW YORK) — The cost of a 30-year fixed rate home loan has jumped from 3.5 percent in February to about 4.7 percent in the past three months. But the gap between the rate banks charge borrowers and what savers get is growing.
“While it has become more expensive to borrow money, when it comes to actually growing wealth there’s still no opportunity there in terms of interest rates offered,” says Casey Bond of gobankingrates.com.
People who rely on bank savings accounts are getting virtually no return.
“Right now the average interest rate on say a savings account in the U.S. is 0.11 percent,” says Bond.
That’s well below the rate of inflation.
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