[financialnut]

Originally Posted by kork13

Yes, the Fed rate influences savings account interest rates alot. When the rate goes down like it has over the last year and change, banks can get money cheaper from the government and other banks, so why keep paying depositors high rates? So banks lower interest rates. To keep business coming (for their other products... checking, CC's, CD's, loans, etc.), customer loyalty, and the "cash-in-hand" factor, they will still offer at least some sort of return (even if they can get loans for almost nothing from the gov't)... But as evidenced by the spectacularly LOW average nat'l interest rate right now (somewhere near .5% I think?), they aren't paying much.......

Fantastic. Thank you.