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But inflation has risen steadily this year, which means bank depositors are essentially facing a negative interest rate return.
When investors lengthen the average maturity of their holdings for a better interest rate return, they assume a risk that if they sell out before maturity the price of the security (its principal) may have declined.
Some sporting debentures offer an annual interest rate return to holders.
With Series I bonds, you'll get a fixed interest rate return and an adjustable inflation-linked return.
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That wave of defaults is pretty near an end, and therefore, as the market improves, you can get a nice capital gain while you're getting these double-digit interest rate returns.
The interest rate returned 3,467,000 VND (208 USD) to pay the monthly incentives for 73 collaborators and 4 CMC workers after August 2008.
When interest rates return, will there be an equally rapid decline?" he asked.
The problem of the debt will also be compounded when interest rates return to normal levels, increasing the interest portion.
As interest rates return to more normal levels, the cost of servicing the national debt is likely to increase, too.
"Like all bubbles, these exaggerated increases can rapidly reverse when interest rates return to normal levels," he said.
When the economy recovers and interest rates return to historical norms, taxpayers will no longer be subsidizing artificially low interest rates.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com