If you are investing in a savings bond, you wish for it to have a high rate of interest. If you are selling savings bonds, you wish it to be at a low rate of interest.
When market interest rates exceed a bond's coupon rate, the bond will:
The interest rate paid on a bond is known as the coupon rate. A $1,000 fixed rate bond with a 5% coupon rate purchased at par would yield $50 annually in interest payments.
Difference enters bond's coupon interest rate the current yield y bondholder's required rate of return?
Since the current market interest rate is higher, it is more attractive to a new investor then the bond with a lower interest rate. Thus, the price of the lower interest rate bond has to decline to be competitive with new bonds in the market.
in closed economy the macro economic concept is that if interest rates increases people are want to deposit their money, in closed market if interest rate increases people want to put their bond
The interest rate on savings can be as high as 2.5% in the UK, despite the extremely low national interest rates. If one is willing to lock their money up for longer, e.g. such as a bond, they might get a higher rate.
WaMu is the best provider of High Interest Rate Savings Accounts.
A premium savings bond is simply a bond which trades at a coupon rate that is higher than the prevailing interest rate. This increased coupon rate will cause the bond to mature faster than it otherwise would.
Bank of America offers very high interest savings in NY.
High interest savings account rates vary, depending upon the bank a person selects. A higher interest savings account rate could be anywhere from 0.75% to 1.00%.
$50.00 ... plus whatever the interest rate of the bond was at the time of issue.
There are several banks that offer high interest savings accounts. ING Direct has a good reputation for offering a high interest rate with excellent customer service. Ally National Bank and American Express also provide high interest rates on their savings accounts.
The best high interest savings account rates include Nationwide Bank, with a 1.04% rate, Ally Bank with a 1.03% rate, and American Express, with a 1.00% rate as well.
Chase currently offers an interest rate of .5 on their savings accounts. These are not high rates.
Interest rates vary depending on the bank the savings account is in. For a high yield savings account, interest rates can be from 0.95-3.0% annual percentage yield.
Rated best bank by Money Magazine 2012, Ally bank offers the highest savings interest rate. The interest rate starts at .84% and has no minimum balance or monthly fees.
There are several banks that offer high rate savings accounts. Some of the best options for high interest rate accounts are through TD Canada Trust, Scotiabank and Bank of Montreal.