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After years of making very little profit, banks are finally making good money for savers. And even if bank interest rates haven’t risen yet, they could change soon.
With the failure of two banks, Silicon Valley Bank and Signature Bank, many customers of small and medium-sized banks withdrew their money and deposited it in larger banks, which are considered safer.
Smaller banks will likely be forced to retain remaining customers Raise the interest rate on your savings accountaccording to a Wall Street Journal report.
Some banks have already raised interest rates on savings accounts, the newspaper said. According to the WSJ:
“Los Angeles-based PacWest Bancorp, a lender with many start-up customers, had offered as much as 5.5% on short-term CDs in recent weeks. It yields about 5.4%, but could go higher if the Federal Reserve’s benchmark rate rises.”
The average interest rate on bank and credit union deposits was 0.37% in March, up from 0.06% a year ago, according to the WSJ. However, interest rates for online savings accounts were much higher, averaging around 3.75%.
Even big banks are starting to raise interest rates now, according to the WSJ. Citigroup, JPMorgan Chase & Co. and Wells Fargo & Co. have all significantly increased interest rates on interest-bearing accounts, the newspaper said.
Of course, you don’t have to wait for your bank to raise interest rates when many others have already. Stop by Money Talks News’ Solution Center to find the best savings account rates today.