Countrywide Bank Increases Interest Rates
In a perhaps desperate attempt to remain liquid, Countrywide has further increased the interest rate paid on savings accounts to 5.50% with a minimum $50,000 balance. Such accounts allow an individual to deposit up to 2 million dollars and enjoy high interest rate payments. It would appear Countrywide is then able to use such cash to handle its liquid cash obligations in order to continue lending.
While many are perhaps inspired by such a high rate to place their entire savings in such an account, one should always proceed with caution before depositing more than $100,000 in any one savings account due to FDIC limits. Should Countrywide’s attempt to get out of debt fail, the bank could potentially close up shop with depositors out any funds beyond the $100,000 FDIC insurance offered.
Nonetheless, such high interest rates certainly seem indicative of rising interest rates across the board. Only a few years ago, one could easily find mortgages that offered rates for less than 5.50%, often for periods up to 30 years. Lesson learned? One should always refinance when rates bottom in the future. Today’s high rates are certainly heading much higher than they were before.
Comments
Leave a Reply
You must be logged in to post a comment.