Here's Why Your Bank Account Interest Rate Won't Go Up Even If the Fed Raises Rates
The Federal Reserve has raised rates four times since 2015. The market expects a fifth post-crisis increase in the Fed's target rate on Wednesday, which would bring the fed target to a range of 1.25% to 1.5%.
Even as interest rates trudge higher, most savers aren't seeing the benefit on their checking or savings accounts. That's because many banks have all the deposits they need -- and then some -- eliminating the need for banks to compete with higher interest rates on their deposit accounts every time the Fed votes for an interest-rate increase.
Interest rates are nothing more than the price of money. The price of anything, including bank deposits, is governed by the basic law of supply and demand.
Source: Fool.com
Synchrony Financial Stock
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