What Is the Bankrate Monitor Index?

The Bankrate Monitor Index serves as a comprehensive gauge of interest rates offered on various depository accounts at banks and credit unions throughout the United States. These accounts encompass a range of financial instruments such as checking, savings, money market, and certificates of deposit (CDs).

Initially founded in 1976, the Bankrate Monitor Index transitioned to the digital landscape in 1996, evolving into the widely recognized personal finance hub, Bankrate.com.

Key Takeaways

• The Bankrate Monitor Index tracks interest rates on popular financial products.
• Bankrate.com provides a range of personal finance resources including interest rate data, calculators, and educational tools for products like credit cards, mortgages, and more.

How the Bankrate Monitor Index Works

The inception of the Bank Rate Monitor Index by Robert K. Heady in response to the Garn-St Germain Depository Institutions Act of 1982 marked a significant milestone. This act deregulated savings and loan associations, allowing banks to offer adjustable rate mortgages and money market accounts.

The primary objective of this Index was to empower consumers with insights into prevailing deposit rate trends, enabling them to make informed decisions when managing their finances.

Over the years, the transformation of the Bank Rate Monitor into Bankrate Inc. in 2000 and its subsequent IPO in 2011 underscore its evolution. Acquired by Red Ventures in 2017, Bankrate has emerged as a prominent source of financial research and news, collaborating with esteemed media outlets and providing a plethora of consumer-centric tools through Bankrate.com.

Real-World Example of the Bankrate Monitor Index

Bankrate’s current iteration involves offering consumers valuable insights through surveys and data on interest rates across a spectrum of popular financial products. From credit cards to mortgages, Bankrate’s website acts as a one-stop destination for individuals seeking information on diverse financial instruments.

For instance, Bankrate’s comprehensive credit card rankings categorize cards based on criteria like annual fees, interest rates, and rewards, empowering readers to make informed decisions tailored to their preferences. Similarly, individuals contemplating mortgages can access detailed information based on their location and financial parameters, all harmonized within a user-friendly interface.