THE ECONOMY: Inflation Pressure Continues to Build
The Labor Department reported that the Producer Price Index (PPI) rose 1.2 percent in July, well ahead of economists' expectations of a 0.6 percent increase. Core PPI (excluding food and energy prices) rose 0.7 percent and prices for intermediate goods rose 2.7 percent. The July inflation measures will add weight to the members of the Fed who are advocating higher short-term interest rates. Find the latest economic releases on the Money-Rates.com Economic Indicators Page.Posted 8/19/08
ONLINE BANK DEALS: 6.00% Reward Checking Yields and $100 Gas Cards
Reward checking account rates are holding with over 20 banks offering 6.00% yields and at least another 50 banks offering 5.00% yields on the innovative checking accounts. Reward checking accounts typically have monthly requirements to earn the highest available yield. Find an updated list of rates, yields, and requirements on the Money-Rates.com Reward Checking page. U.S. Bank has introduced a new promotion in which the bank is giving away $100 in gas for customers who open a new checking account. Find the details of the U.S. Bank gas offer and more bank deals on the Money-Rates.com Bank Deals page.Posted 8/18/08
MORTGAGE RATES: Inflation Fears Keep Rates over 6.00%
The most recent survey of mortgage lenders released by Freddie Mac reported a national of 6.52% on 30-year fixed rate mortgages and 6.07% on 15-year fixed-rate mortgages. Mortgages rates have remained in the same range for the last couple of weeks as economic data continues to send mixed signals with high inflation but slow economic growth. Homeowners can compare rates on new home loans, refinancing, consolidation loans, home equity loans, and home improvement loans at GuidetoLenders.com to find the loan that best suits their needs.Posted 8/18/08
ONLINE BROKER DEALS: Brokerage Firms Battle for New Accounts
The Money-Rates.com Online Broker Report has been updated with the latest deals from online brokers Tradeking, Scottrade, TD Ameritrade, ING Direct, Charles Schwab, E*Trade Securities, SOGOTRADE, Fidelity Investments, Zions Directr, and Zecco including offers of free cash, lowered commissions, and free trades.Posted 8/18/08
ONLINE SAVINGS RATES: 4.00% Rates Available
Goldwater Bank and Amtrust Direct top the list of highest rates on bank savings accounts with yields of 4.00%. With many major banks offering over 3.00% on their online savings accounts (compared to less than 1% on many local brick-and-mortar banks), the percentage of banking customers who use online savings accounts has increased again in 2008.Posted 8/15/08
MICROFINANCE REPORT: KIVA Enlists Businesses for Fight Against Poverty
KIVA has provided an easy way for individuals to loan money to third-world entrepreneurs in poverty-stricken countries since 2005. Pre-screened borrowers post profiles on KIVA with their goals and dreams and lenders through a social network can choose exactly who receives their funds. KIVA loans which can be for as low as $25 have recorded less than a 2% default rate. The latest venture from KIVA is the KIVA B4B Project in partnership with Advanta Bank. The program allows businesses to choose a lender in a third-world country to receive funds granted from an Advanta BusinessCard. Advanta matches the amount dollar-for-dollar, while KIVA distributes the funds and collects the repayments. After a loan is repaid funds can be withdrawn or lent to another KIVA lender. Find more information about microfinance sites on the Money-Rates.com Microfinance Page.Posted 8/14/08
MOBILE BANKING: SplashMoney Available from Apple Store
SplashMoney, the best-selling personal finance application for the Palm Treo, is now available from the Apple applications store for download for the new Apple 3G iPhone. SplashMoney allows users to track their banking actviity and budgets through their handheld and download transactions into customized reports. The Apple store also contains applications from major banks like Bank of American and Provident Bank which are available for download iPhone. The proprietary banking applications are considered a more secure form of mobile banking than using a mobile browser by industry experts.Posted 8/13/08
BANKING UPDATE: Nation's Largest Banks Offering Some of the Best Deals
The stock prices of the nation's largest banks have been battered in 2007 and 2008 with major banks like Wachovia Bank (-64.6% from 52-week high), Washington Mutual Bank (-85.3%), National City Bank (-84.8%), and Regions Bank (-62.8%) among the casualties. The banks have responded by offering some of the best rate offers and promotions available for online banking customers including 5.00% CD rates, free iPods, and more.Posted 8/13/08
TREASURY BONDS: Yields on TIPS Signal Lower Inflation
Treasury Inflation Protected Securities (TIPS) have been a favored benchmark to measure the expectations for inflation in the market. The difference in yield between a TIPS bond and a Treasury bond of a corresponding maturity is considered the expected inflation rate for the duration of the bond. The spread now registering below 2.25% on 10-year bonds is at its lowest level in five years. Economists have been pointing to a decrease in commodity prices and the low yields on TIPS as leading indicators that inflation may be subsiding More information on TIPS is on the Money-Rates.com US Treasury Page.Posted 8/12/08
SOCIAL LENDING: Loan Rates Below 8% at Social Networking Sites
The latest data released from social lending sites is showing a small decline in the average loan rates paid by borrowers in securing private loans. Prosper is reporting an average rate of 7.94% on their AA-loans over the last 30 days. Lending Club borrowers with the best loan grades can receive a loan with a rate of 7.37% on A1 loans or 7.68% on A2 loans. Zopa US borrowers receive help from Zopa members to bid down their loan rate, but can receive a starting loan rate as low as 8.49% before the help arrives. Find more information on personal loans and social lending on the Money-Rates.com Social Lending Page.Posted 8/11/08
FEDERAL RESERVE: Fed Leaves Rates Unchanged
The Fed's policy-making committee kept interest rates unchanged with one dissenting vote calling for a rate hike. The Fed's statement did not give a clear direction on the future of interest rates but reads in part: "Inflation has been high, spurred by the earlier increases in the prices of energy and some other commodities, and some indicators of inflation expectations have been elevated. The Committee expects inflation to moderate later this year and next year, but the inflation outlook remains highly uncertain." Economists are paring back their predictions of higher short-term interest rates in 2008, although the Fed's statement makes it clear that rate hikes are still a possibility. View Federal Reserve news and predictions on rates on the Money-Rates.com Federal Reserve page.Posted 8/5/08
SOCIAL LENDING: Online Lending Forecast to Increase
The higher cost of borrowing money and the ease of social lending sites has increased the number of private loans to an estimated $60 billion a year in the United States and is expected to climb even higher in 2009. Companies like Prosper. Fynanz, Lending Club, Virgin Money US have formalized the process of securing private loans from friends, family, or from online lenders through a streamlined and secure online platform. These sites can typically handle the small dollar amounts that do not qualify for bank loans. Social lending can also help borrowers find lower rates and lenders have more control over the terms and rates for loans which they choose to fund. Visit the Money-Rates.com Social Lending Page for more information on online lending.Posted 8/5/08
FIND A BETTER BANK: Bank Search Engine Compares Rates and Fees of Local Banks
Money-Rates.com visitors can now easily use the Find A Better Bank Comparision Tool to find the bank that best suits their checking needs. The online tool gives consumers a detailed and unbiased resource to find which bank best meets their needs by asking them to rate the importance of various banking services and features and then filtering banks in their area. The online tool provided includes online banks in their search results as well as banks which have special deals for students or people over the age of 50.Posted 8/5/08
FREE AIRLINE MILES: Frequent Flier Mile Rewards from Credit Cards and Bank Accounts
Airline industry analysts are forecasting a large jump in airfares if crude oil prices stay over $130 a barrel this summer. Airfares, which are already costly, could increase another 50% by some estimates if energy prices remain high through the fall. Free airline miles may be more valuable than ever and consumers can find them at Money-Rates.com. Check today for credit cards which reward airline miles and online banks who reward miles for banking activity.Posted 8/5/08
