Interest savings

Interest rates in the U.S. are at or below levels not seen since the middle of the last century. This means home buyers are able to obtain mortgages at record low rates, saving them tens of thousands of dollars over the life of a standard 30-year home loan. For frugal Americans who depend on interest income from savings invested in certificates of deposit and the like, however, this period of low interest means their revenue stream has dwindled almost to nothing.

Interest rates, which are generally tied to rates set by the Federal Reserve, are adjusted for a variety of reasons, including economic stimulation and moderating inflation when it begins to spiral out of control. With the world still recovering from its deepest recession since the Great Depression, interest rates are being kept low to spur the kinds of economic activity that produce investment, production, sales and jobs.

For tax-supported entities, today's low interest rates can be a boon. The Cape Girardeau School District's recent $40 million bond issue will cost millions of dollars less to pay off. Southeast Missouri State University also is considering a $40 million bond issue for major renovations. It too would expect to see major savings on interest costs while speeding up the process of addressing some urgent needs that have been delayed.