By Josh Resnek
The Federal Reserve Board last week raised interest rates another ¼ point causing mortgages and consumer loans for cars to go higher.
Also going higher are the returns those with cash can achieve with bank interest on cash accounts.
They have also risen nicely during the past five months.
In fact, keeping money at interest in a local bank has not looked safer or more lucrative in years.
Basic banking allows for institutions where you keep your money at interest to earn more interest if the bank can lend out the money at a higher interest than it pays you.
That may sound a bit convoluted, however it is true.
The bank pays a certain amount of interest for you to keep your money in the bank. The bank then lends out that money at a higher rate of interest to those wanting loans. That’s how the bank generally makes its money and keeps itself solvent.
Locally, bank rates for interest on cash accounts have been rising.
At Everett Bank if you open a Milestone Savings Account you receive interest of 3.45%. That’s with a deposit of $10,000 or more.
To the right is Everett Bank’s mortgage rates.