What is happening is that most regional banks do not have high yield savings accounts.
That means that if you put your money in a regional bank low yield savings account you will earn annual interest of under one tenth of one percent.
Some folks have moved money that used to be there to banks with high yield savings accounts that pay in the 4 to 5% range.
Some folks have moved it out of banks altogether into market market funds that pay in the 5% range.
It is amazing to me that the low interest paying regional banks have survived this long. They are doing it because they are not required to “mark to market” their real estate loans so their books look ok.
In fact they are broke.
I understand that. IT is the headline to intentional confuse.
My bank doesn’t have money market accounts... what’s your take on CD’s?
I can go to Charles Schwab fixed income page and get a $1,000 TCD paying over 5%.