Big banks are still paying paltry interest on checking and savings accounts despite the Federal Reserve’s steepest rate increases in decades. Their wealth-management customers are done waiting: They are moving the extra savings they accumulated during the pandemic into products whose rates have more closely tracked the Fed.
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Rich customers pull money from banks offering paltry interest rates
“Every time the Fed hikes, the opportunity cost of leaving idle cash in low-yielding accounts increases,” said Jason Goldberg, an analyst at Barclays PLC. “You’re seeing consumers who have extra cash being proactive with it.”
