“To date over $ 100 billion has been borrowed to keep the banks solvent”
Quibble with the article—the banks are insolvent—which means the value of their liabilities exceed the value of their assets.
The money they borrowed from the fed gave them liquidity—so they did not run out of cash.
When they run out of cash they are....
Closed.
Some internet banks are offering 5%+ on your deposits. CDs approaching 6%.
There’s a reason Wells Fargo and B of A are both under .5% for savings, as are most big banks.
I moved all my savings out of my local bank recently. I looked a few months ago and saw they war paying me literally .1% interest in my money market savings account....when interest rates nationally are like 5%.
I moved everything out except what I use month to month in checking, and put it into a high yield savings account with American Express.
I’d would have accepted a slightly less competitive interest rate from my local bank and still allow them to hold my savings...but they weren’t even remotely competitive. Borderline insulting actualy.
.
We parked nearly all cash into money markets and 6 month treasuries a few months ago. Both are paying over 5%. What did the Fed think people would do? Leave them in a 0.25% checking account?
Actually had one bank call and say they noticed the interest payments on my T-bills and wanted to bring that money back into their bank as 6-month CDs.
Told them not only to get lost, but grilled them on why they were snooping on my account for advertising purposes.
I don’t mean to sound like a moron, but how does this affect credit unions? I have checking/savings/car loan through the credit union...
Starting to smell like a depression coming on no uptick in the money flow.
FDIC has been staffing up for a while now.
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My credit union is emailing me every week on credit lines (unused) that interest rates have been updated. However deposit rates are still at 0.45% for savings and 0.00% for savings. They might as well say we don’t need deposits.