Finding the Best Interest Rates
Interest rates can have a huge impact on your finances, whether you’re looking to take out a loan or grow your money with a certificate of deposit (CD) account. Many websites can provide you with national interest rates. For Kansas City, Mo., residents, GOBankingRates’ rate table search tool can help you find a local bank with rates that suit your financial goals.
How Are Interest Rates Determined?
First, you should know how financial institutions determine interest rates. The following four factors heavily influence the rates you can find:
- Current condition of the economy: This includes inflation rates and the stock market. Typically, interest rates rise when the economy is doing well and fall when it is doing poorly.
- Terms of the loan: Long-term loans generally have lower interest rates while short-term loans generally have higher interest rates.
- History with the lender: If you have an established history with your lender, you’ll typically be able to receive a discounted interest rate on loans. This can be a huge advantage when working with local banks and lending institutions.
- Your credit risk: If your credit score is high, you’ll receive a better interest rate on loans. Why? Your credit score is an indicator of how trustworthy you are as a borrower. The better your score, the more likely a lender will trust you.
Choosing a Local Kansas City Bank
When opening a savings account or a CD, you want to go with a lender that offers not only high interest rates but also outstanding customer service. Local banks and credit unions tend to offer better rates, lower fees and better customer service compared to large, national banks.