No. of Recommendations: 0
For various reasons I'm on many accounts , not just family but friends as well. So , in the aggregate I see statements from many firms. It's incredible what banks, brokerage firms, and other financial institutions are, offering, to hold on to and attract money. This tells us banks, cost of deposits, will be up, substantially, going forward, as Americans become better educated. It's going to be a very interesting year for bank earnings , as their cost of deposits, explode, and they are forced to mark to market.
No. of Recommendations: 1
It's incredible what banks, brokerage firms, and other financial institutions are, offering, to hold on to and attract money.
Are you speaking of account opening bonuses in this? My impression is that the bonus opportunities are down both in availability and in amounts, compared to a couple of years ago - and in many cases the return on a bonus + near-0% interest rate account is actually less than just putting the required funds in a 4.5-5% account at another institution. Likewise brokerage bonuses are sparser (though Public had a period last year where they were offering $10K for transferring your account, and then for some reason they doubled that bonus in my case - not that I'm complaining).
No. of Recommendations: 0
Good morning, no, not just promotions to attract new accounts but for adding to existing accounts as well. Even at say a Schwab account, their mmf yields say 4.3, .50 less than say vanguards mmf, but, that's close enough to keep the money in house at Schwab. Several friends have, substantial accounts, at firms I never did business with. How do banks make money paying 4.3 for deposits when lending is so tight? For how long will t bill rates be this high?
