Banks pay savers more as ‘higher-for-longer’ rates hit interest income

finance
Created 4/28/2024
Updated 4/28/2024

In a twist of fate, U.S. banks are dishing out more cash to keep savers happy as interest rates stubbornly refuse to drop. For the first time since the Fed started hiking rates two years ago, banks like Wells Fargo are paying way more in deposit fees—nearly USD594 million more this quarter than last. Meanwhile, interest income from loans? That's barely budging. JPMorgan and Citi also feel the pinch, shelling out an extra USD350 million each to depositors. It’s like a financial tug-of-war where everyone's trying to keep their balance! So, next time you check your bank account, smile, knowing your bank might be scrambling just to keep you around.

Original Article


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