Don't Get Too Used to Higher Bank Deposit Rates

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Investors, increasingly think the Federal Reserve is on course, to cut interest rates at least once this year that makes it likely banks could start to reverse course on deposit rates, which while still low by historical standards have climbed over the past two years. Wall Street Journal reporter Alison pranks has growth in payouts to savers has already begun to stall in some deposit categories, Alison explain, you know, at the muddy area, just because a number of different types of deposits, feedings accounts, you have the ones that are I would just you're going to both types of CDs with different maturity. So it's kind of the money area reporting in that respect. How about big big banks versus small banks? Does that matter here? We have one the one of the things we know in my story was piper Jaffray point, they looked at deposit products from group of about one hundred twenty banks and the specific specifically looking in the first quarter of this year, compared to the previous year's megabanks basically deposit, eighty seven different products in the first quarter saw decline in their rates compared to eighteen compared to the first quarter year ago. So basically, we've seen more decline still a number of those rates went up, but it's less than they did in the first quarter last year. So they didn't really specify the data comparing onsides. But that'd be, you know, a big thing to keep in mind with this is different banks are going to offer you different things. And you can, you know, view online and various websites, you know, like, great whatever not you wanna use kind of the different offerings and people have promotional rates a lot higher. You know, other rates are a lot lower. So it's just kind of a mix it as a consumer. You're, you're looking out to shop therapy anchor sitting doing that. There was a one observer analysts in your story, who basically said borrowers. UA savers, boo. Right. Exactly. That was there was this region financial club. Yeah. He's quoted if you're borrowing, you're excited, and then he say sad. If you're a saver dot dot you're left excited. So totally it was a really good way to kind of an interesting way to hear banker somebody up, we're speaking with Allison pring reporter at the Wall Street Journal. She's written a piece, entitled don't get to use to hire Bank deposit rates. I think there was a somebody from Mt Bank in your story to said the really not experience. Any any pushback on this either with. He noted that was their CFO during king. He said he noted that there's kind of less competition in terms of things. But deposits, and he said it was in any given category that was part of his close. So, yeah, it's an interesting thing he also noted that will be with us that, you know, the kind of calms says with this loan growth backed up to, you know, loan growth hasn't been super robust, so in banks three than banks need to pie. This is so that they can lend that money out. You know. So this is also a deposit pricing. You could argue with also and grow. It's not you don't need maybe be competitive try and keep deposits. If you don't need to find, you know, really a an extensive growth in loan. So it's interesting how, you know, thinking complicated in that way. But it makes that impact each other. Ellison praying reporter at the Wall

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