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Future Deposit Rates? Clues from a Financial Times Article


This Financial Times article describes how US banks are scrambling to refinance maturing debt. It seems this should push deposit rates higher. Here's an excerpt:
The banks' need to raise capital to offset mounting credit-related losses is forcing them to pay higher interest rates to entice investors.

Although this pertains to bonds and other finance products, it seems this should raise the demand for consumer deposits.

In January this BestCashCow article foresaw how the sub-prime crisis and the credit crunch would affect deposit rates. The predictions in the article have been pretty accurate. Since the last drop in the Fed Funds rate on April 30th, top CD rates with terms of one year and longer have increased by about 50 basis points.

Thanks to the reader who mentioned this article in the finding deals post.

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