Bank Deals Blog: Deposits Education and Strategies

The Fed decided to hold rates steady at the end of its September 19-20 meeting. This was a widely expected decision. Before today, the odds that the Fed was going to hold rates steady had risen to the high 90s. This decision was also inline with the “every other meeting” rate hike strategy that the Fed appeared to put in place in June. Below is the excerpt from today’s statement with the rate decision.

Some insights into the Fed’s future rate decisions can be seen in the Summary of Economic Projections...

A brick-and-mortar bank is an essential part of financial management for some, offering in-person customer service and support. While a 2020 DepositAccounts study showed bank branch closures slowing despite the COVID-19 pandemic, these physical locations are becoming less and less available.

In fact, the newest DepositAccounts study shows there were 7.9% fewer bank branches in June 2023 than in...

As expected, the Fed increased its benchmark rate by 25 bps today, raising the target federal funds rate (TFFR) to 5.25%-5.50%. This now exceeds the peak of the 2004-2006 rate hiking cycle when the TFFR reached 5.25% (peak lasted from June 29, 2006 until September 18, 2007). You have to go back to early 2001 for a time when the TFFR was higher.

Below is the excerpt from today’s statement with the rate decision.

Today’s rate hike kept the Fed on track for an “every other meeting” rate hike strategy which was...

The Fed decided to hold rates steady at the end of its June 13-14 meeting. This is the first Fed meeting without a rate hike since January 2022. This was inline with market expectations. Below is the excerpt from today’s statement with the rate decision.

The surprising news from this meeting came from the Summary of Economic Projections (SEP) which includes the dot plot providing forecasts of the federal funds rate. The dot plot was more hawkish than anticipated. The forecasted terminal target federal funds rate has moved up by 50...

The Fed showed commitment to bring down inflation by following through with the expected 25-bp rate hike. The target federal funds rate increased to 5.00%-5.25%. This is very close to the peak rate from the 2004-2006 rate hiking cycle when the target federal funds rate reached 5.25% on June 29, 2006.

The failure of First Republic Bank on Monday was too late for it to impact today’s Fed decision. It may impact future meetings, especially if other large banks fail in coming months. The Fed acknowledged these banking developments and their...

Two major U.S. banks — Silicon Valley Bank and Signature Bank — closed in March 2023. But while these shut downs came as a shock to the general public, there is some positive news for the average bank account holder: Over the last two years, banking has shifted to favor the depositor. Not only have the amount...

The Fed followed through with the expected 25-bp rate hike. When the banking crisis began after the failure of Silicon Valley Bank, the odds of a 25-bp rate hike today went down fast. The Fed was under pressure to pause today for the sake of financial stability. The fact that it decided to follow through on a rate hike shows some commitment in bringing down inflation. In addition to continuing the rate hikes, the Fed is also continuing the reduction of its balance sheet with no changes in its pace.

Interest rates have risen at a meteoric pace. The Federal Reserve's target federal funds rate is 4.50% to 4.75%, the highest since 2007. For those paying attention, knowing how to take advantage of this high-rate environment is crucial — particularly when choosing a financial institution.

Researchers analyzed DepositAccounts data to estimate average APYs for small, medium, large and online banks and credit unions among select institutions. Additionally, we...

At the conclusion of the FOMC meeting this afternoon, the Fed announced a 25-bp rate hike. This follows a 50-bp rate hike in December and a 75-bp rate hike in November. It’s interesting to note that the Fed has ramped down its rate hikes like it ramped up rate hikes early last year. That suggests this might be the last Fed rate hike, but it’s too early to make that call.

This downshift to a 25-bp rate hike was highly anticipated after the inflation reports over the last two months that...

At the conclusion of the FOMC meeting this afternoon, the Fed announced a 50-bp rate hike. After four 75-bp rate hikes at the last four meetings, the Fed decided to downshift to a 50-bp rate hike. This was highly anticipated after the recent lower-than-expected inflation reports.

The target federal funds rate is now 4.25%-4.50%. This is now 200 bps above the peak of the last rate hiking cycle (2015-2018). We haven’t seen federal funds rates this high since late 2007. The last time the Fed increased the target federal funds rate...