Tag Archives: Interest

General Business

Rba Leaves Interest Rate Unchanged

The official cash rate has been left unchanged by the Reserve Bank of Australia.The Reserve Bank of Australia has left the official interest rate unchanged at 4.5 per cent.Glenn Stevens, governor of the organisation – which last upped the cash level in May, the month in which it later declared home loans were about the right level – predicted that the global economy will ease back to around trade price over the coming year, despite growing faster than this from the start of the year until mid-2010.

He pointed out that Aussie credit growth is fairly subdued and there is not a lot of movement in either direction in terms of asset values.Mr Stevens also noted that that consumer price index inflation has calmed down from its excessive pace of 2008 and been around 2.75 per cent higher throughout the past year and this looked “likely to continue in the next term”.

He added that the current monetary policy level means interest rates for borrowers are near to last decade’s average, but “the board regards this as appropriate for the time being”.”If economic conditions evolve as the board currently expects, it is likely that higher interest rates will be required, at some point, to ensure that inflation remains consistent with the medium-term target.”

In addition, the governor observed that public spending was important to drive demand for a number of quarters, but the impact of this is now less.However, this is in contrast to the latest Commonwealth Bank Business Sales Indicator (BSI), which revealed that the number of debit and credit card transactions at the organisation’s point of sale terminals increased by 0.1 per cent in August.

This reading was the first positive one since November, although there was a BSI decline of 2.7 per cent over the year – the worst since records began six years ago.

Market Analysis

What to Look For When Comparing High Interest Money Market Accounts

Everyone wants to make the most out of their money, which is why high interest money market accounts are so attractive. Whether you’re saving for a child’s education, a new car or a down payment on a home, money market accounts are the ideal place for short-term savings. Money market accounts blend the best of savings, checking and certificates of deposit. Here’s what to look for when comparing money market accounts.

Take Your Search Online

It used to be that opening a money market account meant that you had to take whatever rate your local bank gave you. Today, thanks to the internet, nationwide branches and even online-only banks have made the rates for money market accounts even more competitive. There are plenty of websites that provide you with daily rates, as well as ratings, terms and more information, letting you choose between dozens of high interest money market accounts to find the one that suits your needs and financial goals.

Security and Safety

Once you’ve started to compare high interest money market accounts, chances are you’ll find very different requirements. Beyond the numbers, you’ll want to check for a high rating from well known rate comparison sites like Bankrate.com. Sites that have earned this rating have been deemed safe, secure and reliable for online and offline banking. Because money market accounts aren’t subject to the volatile changes of the stock market, they are a great short-term saving solution for anyone who’s looking for low-risk, but still want the flexibility of being able to access their funds.

Get Rewarded!

Banks provide high interest money market accounts as a way to reward loyal customers for their business. Some banks provide high interest on this type of account with only a $1,000 minimum balance, where the interest you earn is compounded daily and added to your account every month.

No matter which of the many high interest money market accounts you ultimately invest on, you can feel secure knowing that you’ll be able to manage your account online, just as you can with your savings and checking account. This kind of flexibility lets you transfer money between your money market account and other bank accounts (even if they’re at other financial institutions), write a set number of checks each month and even link your money market account to other accounts for added overdraft protection.

By keeping these tips in mind, you’ll be able to go beyond the numbers of high interest money market accounts and leverage the many advantages that these types of accounts offer in helping you reach your short term financial savings goals.