Why Your Bank’s Savings Rate Isn’t Increasing With the Fed’s | WSJ

The Federal Reserve’s interest rate continues to climb, reaching nearly 4% in November. But the average savings account’s interest rate is just 0.16%. Here’s how banks determine that rate — and which accounts are paying closer to the Fed’s.

Illustration: Adele Morgan

#Fed #InterestRates #WSJ

[SeanTalkoff]

The Federal Reserve has executed a 180 degree turn toward restrictive monetary policy. What will this mean for the economy and stock market? I want to diversify my stock portfolio of $400K because it keeps declining. How can I profit from this bull run?

[ldIezz]

.16% when the bank wants to borrow your money, 5%+ when you want to borrow their money xD

[marky_marc]

Go with an online-only savings bank account. I have AMEX savings and the interest rate is now 3%.

[terrisewell]

Thanks for this amazing information !! If you don't find a means of multiplying money, you will wake up one day to realise that the money you thought you had in bank, has finished, Investment is the key to sustaining your financial longevity. And not just any investment but an investment with guaranteed return., I pray that anyone who reads this will be successful in life too 🙏🙏🙏

[tomjason]

The fin-Markets have underperformed the U.S. economy as fear of inflation hammers the prices of stocks and bonds. My $400, 000 portfolio is down by approximately 25%, any recommendations to scale up my returns before will be highly appreciated.

[andresbonifacio]

Because bank's are greedy even though they got bail out by government money

[brooksaugust]

As recession fears mount on Wall Street and inflation remains well above the Fed's 2% target, some of the top commentators in markets, business, and economics have been sounding off on just how bad they think the next downturn might be — and how far stocks may have to fall. I need ideas and advice on what investments to make to set myself up for retirement, my goal is to have a portfolio of at least $850k at the age of 60.

[potatomatop]

Stop blaming the fed and uninstall raid shadow legends. That's how your savings increase.

[_ismail__]

Always good to hear your thoughtful and logical analysis. I don't care about bullish or bearish market. Trade a small percentage of your portfolio rather than going in and out every couple weeks trying to time the market trading went smooth for me as I was able to raise over 8.4 BTC when I started at 3 BTC in just few weeks implementing VERMONTCORPLTD and tips..

[Valentin-ocnh]

This is wrong, banks do not need your deposits for loans, they create new money when they give out loans. They need deposits for the federal reserve

[TruFinancials]

Love online banks! Plus many of them have no fees with high-yield savings.

[SabbathSOG]

Sometimes you guys at the Wall Street journal are very disappointing. Why do banks not pay you more in interest? Because they don't have to.

[walkerpantera]

THANK YOU so much for explaining this in laymen terms, omg, im transferring the bulk of my savings to an online bank. ill leave my "spending change" in my credit union savings for easy access. this video made it so easy to understand. corporate America, its about THEM instead of US.

[jaimel]

Some of these online banks allow same-day free withdrawal. Money is saved in a regular checking / savings account, and you'll get a debit card.

[amperesclaw]

There was a meme with a bank teller seeing how much money was in the account of the flirting patron but I argued brick and mortars are ripping you off. Told my parents to move their side cash to a high yield—3.25% pays more than my current mortgage rate :P

[Imagine]

Wealthfront Cash Account (FDIC insured CHECKING account) is currently offering a 3.30% interest rate. They raise their rates every time the fed raises rates. You’re welcome.🎉

[DnYD]

Greed and corruption. That is the only correct answer

[joesphcu]

If you're holding cash, you have 100% chance of losing money yearly due to inflation. If you"re holding stocks for 2.5+ years, there is a 100% chance you won't lose money. So where is the real risk?

[danielking]

Savings interest rate is the best weapon against inflation.

[larsthorwald]

My bank has raised my savings rate six times in the last 6 months. Of course, my "bank" is an online HYSA. Free money is nice.