Hi! Thanks for writing! I am not sure if I have enough information from you to answer your question. If you are asking if you might get a better interest rate after years of being a loyal customer at a particular bank, like you might get better rates from an insurance company, the answer, unfortunately, is no. I am not aware of any banks that reward longtime customers with preferential interest rates, although it would be a good idea and a way to put themselves above the competition. I’ve been a 30+ year customer of two credit unions, a bank (which has changed hands three times!), and an investment company, and I don’t even get a free pen at the holidays unless I take one from the lobby by accident.
If you are asking how you know what your interest rate will be over time as interest rates in the market go up and down, the answer is that you can’t really determine or know that answer. Experts speculate on where interest rates may be, but no one can actually determine what they will be in the future. Interest rates fluctuate based on many factors; this chart shows the variation in over the history of the United States since the 1970s (the chart default is 1 year, so once you go to the website, click the tab “MAX” to see rates back to the 70’s).
Your rate also depends on the kind of account or investment vehicle you choose – a checking account may offer no interest; a savings account may offer some small interest; a money market account may be a bit more than a savings account; a Certificate of Deposit or CD will offer more depending on the length of investment period you choose. We are in a low interest rate environment right now, so the no- or low-risk investment and savings choices available today offer very low interest.
I hope this helps! Please write back if I missed the mark. Best wishes and thanks for writing!
Kathryn Hauer, EA, CFP®
Admitted to practice before the IRS
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