Finally, some good news arrived on the jobs front.
ADP reports this morning that private-sector employers hired the highest number of workers in the last three years. That’s right – three years.
For the month of November, private employment rose by 93,000. Economists at ADP had estimated job growth to reach 58,000 for the month. And on top of that, the ADP revised private sector job growth upward for October – from 43,000 to 82,000 new jobs created.
This is good news for bank savers because it shows that the economy is finally getting some upward momentum. That means inflation can’t be far behind, and the Federal Reserve will be more likely to hike its key Federal Funds interest rate (the rate at which it lends money to banks), which should spur higher interest rates on savings vehicles such as certificates of deposit and money market funds.
That’s not set in stone, certainly not in the next few weeks. But the high jobs number, coupled with stronger consumer sentiment, is a good cornerstone for higher bank rates in 2011.
After the dry spell we’ve endured for the past few years, the prospect of higher bank rates is a big thirst-quencher.
Now, onto this week's deals.
Let’s start with a big bonus on college savings: Charter One is offering a $1,000 bonus with its signature CollegeSaver plan.
Just save a minimum of $25 each month until your child turns 18 (you’ll need to open the account before your child’s sixth birthday). You’re allowed one missed deposit per year, and once your child turns 18 you’ll get the $1,000 bonus, deposited directly into your college savings account.
There’s no ceiling on how much money you can pop into the CollegeSaver plan, and the more cash you put into it, the higher your interest rate over time.