The business media isn’t hyping the issue, but the news that the 10-year U.S. Treasury note has hit 4% could mean better rate deals for bank deposit investors this spring and summer.
Typically, bank rates track Treasury rates fairly closely. While waiver and fee expenses can eat up an uptick in interest rates in bond and money market funds, bank savers are usually spared such an ordeal. That should mean a free and clear path to higher certificate of deposit and bank savings and checking account rates.
But be careful not to lock in longer rates. The upswing in Treasury rates may not be sustainable, so it’s likely better to wait until the Federal Reserve actually hikes interest rates to go longer up the yield curve.
Until then, continue to take advantage of Deals of the Week.