Banks are paying savers again after many years of low rates
Banks are paying up for savers’ deposits in a much bigger way than they have in a long time NEW YORK -- Americans are finally reaping some benefit from keeping their money in the bank. Banks are paying up for savers ' deposits in a much bigger way than they have in more than a decade, based on recent earnings reports from the nation's biggest banks. After a decade of low interest rates, the Federal Reserve has unleashed a rapid series of rate hikes to combat inflation, pushing up its benchmark rate to a range of 4.75% to 5%. That has prompted banks to pay higher interest on traditional savings products like money market funds, certificates of deposit and regular savings accounts. A 24-month CD, a common savings product for medium-term savers, is now carrying an average yield of 4.81%, according to the Federal Reserve Bank of St. Louis. That’s up from a 1.18% yield only a year ago. Further, non-bank names such as Apple are getting into the deposit game, giving savers even more...