Interest Rate Risks are Collapsing Banks
https://jameslavish.substack.com/p/interest-rate-risks-are-collapsing
Fed Funds is at 5%, and they’re paying customers 15 basis points on deposits, keeping 97% of the spread for themselves.
Note: 5% has 500 basis points, and they are giving their customer 15 basis points of those 500 bps
What a deal for the big banks 🤔
We went into our bank talking about taking out money to put in treasuries. Our bank changed our interest rate from something like the 0.15% to 2%. It can be as easy as asking. Of course it helps if you have some significant funds. We have our personal and our business accounts with this bank. I don't know if they would be as accomodating if you only had $1,000 or less.
#grownostr #bank
Another thing, the formerly "high interest" savings accounts (I have Capital One 360, formerly ING Direct, but I assume it's similar with others) are starting to deserve the name again. Slowly crept up to where it's now paying 3.5%.
