So I casually asked at the local (regional) bank what their CD rates were. He said the best is 1%. My wife was headed to the local credit union for a deposit. I asked her to find out what the rates were/are. They were about .3-4%...Diddly squat. So I then go to see what is online at Schwab. Treasures are where they should be...Above 4.3%. Also the bank CDs at Schwab are at fair to good rates. It is only the local banks/credit unions that seem to be getting/trying to squeeze the situation. A few things come to mind. The jobs report...Rates may move up next week for the locals. The Treasure may be slower in lowering rates. Also the bad car loans out there...Are the credit unions and banks getting burned by bad loans?? I have never seen this big of a discrepancy between the smaller banks/credit unions and the large banks/treasuries. I have a CD maturing soon at the credit union. I may have to move it to Fidelity or Schwab (or a third broker), if they don't align closer...
I like https://www.baskbank.com/products/interest-savings-account currently at 4.85% after Bask lowered by half a point this week. No time committment, just a basic savings account. My other fav is money market checking account who also lowered half a point this week and currently pays 4.83% https://www.ufbdirect.com/ No unpleasant surprises at either place. Hope it helps.
the banks use cd depositors money to buy treasury to make net income revenue line, that is a well known fact.
Or maybe the FDIC system is mostly insolvent. Decades of poor lending practices. (Affirmative Action, Global Warming, etc). Just imagine JP Morgan lending his own $$$ for any of this stuff. I can't. And the very large subsidy for FDIC banks' CDs becomes a necessary subsidy. Call it payback from policy authorities (FED) Tip the scales. Crazier stuff has happened. *** For the FED, the end game will likely look like the guy who was always spinning plates on the "Ed Sullivan Show". See how many plates will be in the air at the end. Can be very entertaining, but not appropriate for all audiences. Somebody (maybe everybody) will get hurt. And it will coincide with big government stating they are there to help everybody.
My credit union was similar during this relatively high interest rate cycle. CD rates were comparably very low. One of the executives there told me it was because credit unions generally have strong balance sheets and don't need to draw the cash, whereas banks have made more high interest loans and need to backstop the cash for their ratios.
Old Wall Street saying "No good girls in a Whorehouse". At least JP Morgan would see it that way. Huge problems emanating from an ever powerful FED. Just can't be done.
FDIC has not really been tested...Even 2008-2009. I believe when they get tested they will do the following (not popular, but doable). They will say we'll give you your $100,000. of insurance. In a few months, we'll give you $20,000. Next year we'll give you $30,000. And the next year we'll give you $50,000. See you got your money (like we said)... PS All the while inflation goes roaring past you...
what are you talking about? fdic insurance cap works for a layman, even for big business. svb and signature bank deposits are fully covered.
Uhh 30 year Mortgage Rate is down 1.67% in the past year to its current level 6.12% I wouldn't have a fackin' clue (or anyone else hint, hint) what old JPMorgan would think of that. But The Fed reacts, doesn't set, rates. The Discount rate, that they "control", is for intra-bank overnight lending. How is that supposed to affect 30 yr mortgages, 4 yr car loans and revolving credit cards??????