US Banks See Customers Demanding Higher Yields on Deposits

US Banks See Customers Demanding Higher Yields on Deposits


(Bloomberg) — The nation’s two largest banks simply put rivals on discover: they’re lastly ready to pay out extra to savers demanding increased yields on their deposits.

Most Read from Bloomberg

After a yr of relentless fee hikes by the Federal Reserve, JPMorgan Chase & Co. and Bank of America Corp. took activates Friday warning that they’re contemplating boosting the quantity they pay out on the trillions of deposits they’ve sitting on their steadiness sheets. The strikes are poised to weigh on web curiosity earnings, the income banks acquire from mortgage funds minus what they pay depositors.

“We’ve never had rates go up this fast,” JPMorgan Chief Executive Officer Jamie Dimon stated on a convention name with analysts discussing fourth-quarter earnings. “I expect there will be more migration to CD, more migration to money-market funds,” he stated, referring to merchandise paying out increased yields, together with certificates of deposit.

JPMorgan additionally must change the curiosity it…

2023-01-13 16:01:14 US Banks See Customers Demanding Higher Yields on Deposits
Source from finance.yahoo.com

Exit mobile version