Despite month after month of sour bank interest rate numbers, hope does indeed spring eternal.
Treasury bond yields are up and the Federal Reserve is on the way out of the mortgage securities market today — both trends that set the stage for higher bank deposit rates.
More data to support that notion keeps pouring in. Dan Seiver, a finance professor at San Diego State University and editor at the PAD System report (an investment advisory firm) estimates that 30-year Treasury yields will hit the 6% level in the next year or two (it’s at 4.73% this morning).
Seiver cites the improving economy, spiking federal deficits (which forces the government to beef up Treasury rates to attract investors) and rising inflation as reasons why bond rates are heading upward.
If that’s the case, then long-suffering bank deposit investors should catch a wave, too. When Treasury prices rise, they usually take bank interest rates along for the ride. So those meager certificate of deposit or bank money-market rate yields should improve over the coming months.
For now, we’ll have to rely on our own wits and savvy to uncover the best bank deals. Per our Wednesday custom, BankingMyWay.com is on the case with the following Deals of the Week.
It’s Semper Fi for Marine Federal Credit Union, as the Jacksonville, N.C.-based credit union continues on an aggressive path when it comes to high checking account rates.
Now Marine is out with a 5% APY on the credit union’s Bravo Checking account. The great rate is available on free checking account balances up to $25,000, but there is a catch. If your account balance sinks below $15,000, the rate falls to 3.5%.
You do have to clear a few more hurdles each month to get the great rate (as follows):
- Conduct 10 debit card transactions (not at an ATM).
- Receive eStatements.
- Maintain direct deposit of pay or an ACH (automated payment), debit or credit.
Marine also offers a bonus: ATM fee refunds of up to $25 if you meet those monthly qualifications.
Note also that all rates are effective on April 1, and are subject to change on the bank’s notice.