Banks To Stick Savers Who Stuck Cash In Their Vaults?

WSJ warns savers shouldn’t get excited by the Fed’s expected interest rate hike in March since the banks, engorged with pandemic funds, “don’t need the depositors’ money” & are in no hurry to pass the ¼ to ½ point rise to them.

So much for “customer service” unless it means “stick ‘em where the sun don’t shine.” Explains Orla McCaffrey as to why “savers shouldn’t get their hope up”: “Banks have little incentive to raise the interest they pay on deposits … because government stimulus plumped up Americans’ bank-account balances and companies are flush with cash. Total deposits at US commercial banks have swelled to about $18.1 trillion, up from about $13.3 trillion at the start of 2020.” See, it’s the customers’ fault for being so thrifty and giving … to the banks.

Continues McCaffrey: “Banks – which pocket the difference between what they charge borrowers and what they pay depositors – are expected to use the opportunity to breathe life into their bread and butter lending businesses.” Got it. It’s the customers’ fault for being so thrifty and giving … to the banks.

Davd Soul