I am curious about interest on checking accounts, three-month certificates of deposit, one-year certificates of deposit and why there are different rates for each.
Different account types have varying rates for a number of reasons. The bank will take into consideration, among other things, their cost of funds, reserves the bank has to pay based on the deposit, the length of time the deposit will remain in the bank (longer is better) and what other banks are paying in a competitive market.
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Different account types have varying rates for a number of reasons. The bank will take into consideration, among other things, their cost of funds, reserves the bank has to pay based on the deposit, the length of time the deposit will remain in the bank (longer is better) and what other banks are paying in a competitive market.
