- via Telis Demos and Christina Rexrode at the WSJ
- "The jig is up," says James Gilligan, the assistant treasurer at Great Plains Energy. He's referring to banks no longer being able to get away with offering 0% (or close to that) deposit rates after a series of Fed interest rate hikes.
- No bank wants to lose customers, but they're not going to lose a ton of sleep over a few John Does doing some rate shopping. Big corporate depositors, however, are a different story, and treasurers are using that leverage to demand and win better rates.
- The average interest rate paid by U.S. banks rose to 0.34% in Q2 from 0.26% a year earlier, and bankers say business customers are behind the rise. "We defend our turf," says Fifth Third (NASDAQ:FITB) chief Tayfun Tuzun. A typical corporate deposit rate is nearly 1%, he says, vs. the average retail savings rate of 0.18% (as computed by Jefferies).
- Previously: Depositors unite? Banks aren't raising rates (July 12)
- ETFs: XLF, FAS, FAZ, KRE, VFH, UYG, KBE, IYF, FNCL, BTO, IAT, IYG, KBWB, QABA, FXO, SEF, KBWR, RYF, FINU, XLFS, DPST, KRU, FINZ, RWW, WDRW
- Now read: Are Banks Panicking? - Weekly Loan Growth Update
Original article