RateAPY

Federal Deficit May Drive Interest Rates Higher

Posted by: RateAPY Bank Rates News
December 11th, 2009

The new budget year started in October. The November numbers just released show that the first two months of this year’s budget are in the negative 5.7% more than last year’s budget. The Treasury was short over $120 billion in November, which is less than analysts anticipated. But, the budget is expected to be short more than ever in history this year.

The Cost Of Borrowing Money

As the Treasury struggles to finance U.S. debt, money is likely to get more expensive. Interest rates on everything–home mortgage, certificates of deposit, savings accounts, and money market accounts–are likely to go up. Though this is bad news if you need to borrow, it is good news if you have savings. The next few years are going to be a great time to increase your savings and take advantage if interest rates go up as analysts expect.