why are n s and i interest rates so low
The Federal Reserve has the rates about as low as they can go so that, once companies start spending and borrowing again, itâs as easy as possible for the banks to lend them money at a very inexpensive rate. Itâs because of these low Federal Reserve rates that mortgages are so low right now.Banks can get money from the Federal Reserve to cover mortgages at 0.75% and they essentially sell them at around 4%, keeping the difference as their profit.or the most part, a bank can offer whatever rate they want on a savings account. If one bank decided to suddenly start offering a 5% return on savings accounts, they certainly could do so. The only problem is that it would be a really bad business idea.