Rates Current as of Thursday February 09, 2012

« Do all banks hold reserves, and, if so, where do they hold them?

What is GDP and why is it so important? »

How does a credit crunch occur?

A credit crunch occurs when there is either a lack of available in the credit market or lending institutions such as banks, thrifts and credit unions are reluctant to extend credit. At the present time, lending institutions have suffered losses from previous loans, and they are generally unwilling to take significant additional risks or are incapable of measurable amounts of lending while they shore up their capital position. In our current predicament, the biggest underlying cause is borrowers defaulting on existing loans and the properties underlying a defaulted loan are declining in value.

This entry was posted on Saturday, October 11th, 2008 at 8:59 pm and is filed under FAQs. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

No user commented in " How does a credit crunch occur? "

Follow-up comment rss or Leave a Trackback

Leave A Reply

Similiar Content You Might Enjoy

With regard to securities, this term refers to a fractional amount of full value, or the equity outlay, down payment, required for an investment in securities purchased on credit.

Bank Rates December 20th, 2010

Bank rates increased last week on a variety of bank lending and savings products for the first time in several weeks. Mortgage rates were higher for yet another consecutive week, although the rates are off of their highs that had been reached during mid week. Bank CD rates, as a whole, increased marginally

Uniform Commercial Code – a set of laws established at the state level regulating commerce. These laws are proposed by a national group of state-appointed commissioners, but are adopted, with some state-specific adaptations, by the individual states.

Compare and Choose Banks, CDs and Services Based on Your Needs

When choosing the best bank for your needs you need to find a bank that is convenient, pays a competitive yield, and provides you with the service and products you need. Start by evaluating exactly what your needs are from a bank. From here you can review the different bank products from checking accounts and overdraft protection to

CD Rates, Mortgage Rates and Savings Rates Today May 31, 2011

It wasn’t a big week of economic news but what news that did come out drove interest rates lower. Mortgage rates reached their low point for the year this week as did many of the Treasury terms. Ten year Treasury rates ended Friday at 3.07 percent which is generally not seen as a

Central Illinois Bank CD Rates and More

Central Illinois Bank is an Illinois chartered bank and wholly owned subsidiary of CIB Marine Bancshares. Central Illinois Bank offers both personal and business banking solutions. The bank is based in Champaign, Illinois with additional bank branches in Danville, Arrowsmith, Bloomington, East Peoria, Decatur, and Arthur, Illinois. The bank provides lending products including demand deposits, savings

How does inflation affect my bank accounts?

Since there are several different types of bank accounts, inflation will have varying degrees of impact on them. Inflation erodes the value of our money. Higher inflation leads to a greater amount of funds needed to purchase consumer goods. As goods become more expensive we need our investment rates of return to

New Mexico’s AmBank CD Rates.

AmBank is a locally owned bank, chartered in New Mexico in May of 1997. AmBank’s main branch is located in Silver City; the bank has two additional bank branches in Hurley and Bayard. AmBank offers a variety of consumer savings, transactions accounts and loan products. The banks regular savings account requires a $100.00 minimum deposit upon

How many times will a bank allow an insufficient funds check to be redeposited?

Generally, a national bank will redeposit the check twice. However, there are no laws that determine how many times a check may be resubmitted.

Cost of Funds Index

A yield index based upon the cost of funds to savings & loan institutions in the San Francisco Federal Home Loan Bank District. It is one of the indexes commonly used to set the rate of adjustable rate mortgages.

Sovereign Bank CD Rates June 2011

Sovereign Bank CD rates in June 2011 are well above the national average for the promotional CDs marketed by the bank. Sovereign Bank frequently promotes CD with odd terms at above average interest rates as well as special term CDs including step up CDs and rising rate CDs. Bank CDs at Sovereign Bank run the

Lotus Bank is a State chartered full service commercial bank headquartered in Novi, Michigan. The bank serves the city of Novi, Michigan, and the surrounding areas, including Commerce Township, Farmington, Farmington Hills, Northville, West Bloomfield, Walled Lake and Wixom, and offers a broad range of commercial and consumer banking services to small- and medium-sized businesses,

Bank CD Rates October 2, 2009

Bank CD rates had mixed results for the week ending October 2, 2009. Short terms CD rates were lower while midterm CD rates were higher and the longer term CD rates were unchanged. While bank CD rates moved very little in total, Treasury rates continued to move lower for the week with the one year

National Association of Securities Dealers Automated Quotations

NASDAQ. An automated information network that provides brokers and dealers with price quotations on securities traded over the counter.

Collection Agency

A company hired by a creditor to collect a debt that is owed. Creditors typically hire a collection agency only after they have made efforts to collect the debt themselves, usually through letters and telephone calls.

My bank is charging me exorbitant ATM fees. Is this legal?

Yes. Federal law allows banks to charge non-interest charges and fees, including deposit account service charges. All fees should be determined on a competitive basis within the market. Each bank should make the decision on the type, amount, and method of calculation based on sound banking judgment and safe and sound banking

Bank Accounts, CD Rates and FDIC Insurance

Holding a certain amount of assets in bank accounts is very important. Bank accounts not only provide valuable services and competitive interest rates but the investments in standard bank accounts such as money market accounts, savings account and bank CDs are guaranteed by FDIC insurance or the backing of the financial security of the US

CD Interest Rates for the Week Ending September 25, 2009

CD interest rates offered by banks that are available nationally were little changed for the week ending September 25, 2009. Short term bank CD rates, six month and one year term CDs, were unchanged while the longer term CD rates, two year and five year terms, moved in opposite directions by a relatively very small

Less Float Time for Checking Accounts

Clearing checks has become much faster process as technology has improved. Many banks now use digital images of checks instead of the actual checks in order to transfer money more quickly. Many banks now use digital images of checks instead of the actual checks in order to transfer money more quickly. Since checks clear faster,

WaMu Checking Accounts

WaMu is running an advertising campaign with the focus on the size of their ATM network. An ad for WaMu in the December 3rd, 2008 Orange County Register reads, “14,000 more reasons why we’ve got the best checking”. Now that WaMu is part of Chase, the combined ATM network is in excess of 14,000 machines.

CD Rate Updates

CD Interest Rates Mildly Lower January 30, 2012

In the most recent survey of bank CD rates conducted by Selectcdrates.com, CD rates slumped slightly compounding last week’s similar dip. The average yield on the Selectcdrates.com CD rate index moved down to 1.081 percent from an average rate of 1.087 percent found in the previous rate survey. The Selectcdrates.com index covers the top ten [...]

CD Interest Rates Hold Steady January 23, 2012

CD rates remained relatively stable in the most recent survey of the top national CD rates. The average CD rate, as measured by the rates on the best three month, six month, one year, two year and five year CD rates, was unchanged from the previous week. The Selectcdrates.com weekly CD rate survey showed the [...]

CD Interest Rates Display Little Change January 16, 2012

The best CD interest rates available were little changed over the past week. Based on the most recent survey of bank CD rates performed by Selectcdrates.com, the average CD rate gave up less than one basis point or 1/100th of a percent week over week. The average CD rate on the highest three month CDs, [...]

Banking & CD FAQs

Why are there penalties for withdrawing funds from your certificate of deposit before the maturity date?

Certificates of deposit generally pay a higher rate of interest than similar type bank accounts. They pay a higher rate because they have a fixed maturity date that for the most part guarantees the bank has the ability to use these funds for investment and lending activities. One way the bank can make

If a person is added to someone’s checking account are they both responsible for an overdraft?

Yes both parties will be responsible.

If one of my twenty-dollar bills was partially destroyed in my washing machine will it still be any good?

If you have more than 50% of its total area, the bank will replace the bill with a new one. They do this to prevent someone from splitting the bill right in half and doubling their value. Only the portion with a higher than 50% of its total area will be replaceable.

The bank placed a hold on a cashier’s check that later turned out to be fraudulent. Aren’t cashier’s checks supposed to be honored immediately?

Generally, cashier’s checks must be made available by the next business day. However, because of the number of fraudulent and counterfeit checks now being passed, banks are beginning to place an extended hold on cashier’s checks. A bank can only place a hold on the amount of the check deposited in excess of $5,000. And

Best Rates on CDs
Best Interest Checking Account Rates

Discover Bank IRA CD Rates

Emigrant Direct
Sallie Mae Savings

Bank Deals
Checking Account Promotions
Chase Bank Promotions Bank of America Promotions
Capital One Promotions
Citibank Promotion

Second Chance Bank Account
Online Checking Accounts Roth IRA Accounts

Best Credit Card Rates Low Interest Credit Cards Business Credit Cards Credit Cards with Cash Back Credit Card Applications
Best Credit Card Offers
Low Interest Rate Credit Cards
Credit Cards for Bad Credit

Best Prepaid Cards
Chase Bank Credit Cards
Chase Credit Card Offer Chase Freedom Card
Chase Credit Card Interest Rates
Wells Credit Cards
Apply for Citibank Credit Card
Citicreditcard
Student Citi Card
Citibank Dividend Card Balance Transfer Credit Card HSBC Bank Household Bank Credit Card

Personal Checking Account
Bank Certificates of Deposit
Compare Savings Accounts
Setting Up a Bank Account Online Bank Services
Bank Information
Open a Bank Account
Bank Money Markets
Bank IRA Accounts

Mobile Banking Online Banking

CD Ladder
CD Loan

Best Checking Accounts

Senior Checking Account

Car Loan Rate

Business Checking

Online Brokers

----------Calculators ---------

Savings Account Calculator
Compound Interest Calculator
Mortgage Payment Calculator

About Us | Contact Us | Privacy Policy