What determines the interest rate on your saving bond, mortgage or car loan? - saving bond interest calculator
Basically, all interest rates by the amount of money put into circulation. In the U.S., this offer is controlled by the central bank as the Federal Reserve. They control the "monetary policy". Control Congress and the "Prez fiscal policy of tax and spending. If more of the money supply, lower interest rates at the Fed and private banks. When the money supply is low, interest rates are higher. All this is in various forms, transferred to consumers in the form of loans and mortgages.
Sunday, February 7, 2010
Saving Bond Interest Calculator What Determines The Interest Rate On Your Saving Bond, Mortgage Or Car Loan?
2 comments:
A combination of federal rates: discount rates, Treasury rates to ten years, the federal rate for long-term bonds are the main factors.
Interest on savings bonds is the rate set in motion the "first", said the Federal Reserve. Every purchase of a bond issue on Tuesday, has the same speed. Your mortgage or car loan is on several factors: 1 "Premium" has more room for the will what the Bank. 2. Your credit score 3rd Market conditions in your area (ie, means that many companies are struggling mortgage that they can rely on their tariffs, or if you really want a car loan bank, which may coincide with a competitor or even go down).
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