But with an end to rate hikes for now, savers won't continue to see the same upward momentum, and as the probability of a rate cut increases so does the likelihood that those deposit rates will come down.was the first to cut its online savings rate, to 2.1% from 2.2%, in an announcement on June 25.
"After a period of increases, interest rates are on the downswing and are projected to fall further," a spokesperson for Ally said. "These market conditions impact all kinds of things, from mortgages to CDs to savings accounts. Based on these factors, we lowered the annual percentage yield on our online savings account."Days later, Marcus, the consumer finance arm of
, told customers it was also cutting the rate on its high-yield savings account, to 2.15% from 2.25%.2 million customersAcross the board, fierce competition has driven savings rates higher as online banks jockey for deposits. Until now, online-only banks such as Marcus and Ally have been able to offer the highest returns, thanks in part to lower overhead expenses than traditional banks.
As a result, "savers are still far, far ahead from where they were a few years ago," McBride said. Inflation is still running below 2% and consumers who can earn more than 2% are much better off than they were, he said.
Source: Loan Digest (loandigest.net)
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Roger McNamee: Tesla's 'fantastic' delivery numbers buy time but they're not a long-term fixMcNamee warns that Tesla needs to become better at the basics, such as manufacturing and forecasting, if it wants to 'survive' as an auto company.
Source: CNBC - 🏆 12. / 72 Read more »
I Don’t Care about Justin Bieber (But Maybe I Should)More accusations of bullying have been levelled against Justin Bieber (and not just by Taylor Swift)
Source: FLARE - 🏆 376. / 59 Read more »
This could be the time for retirees to lock in an interest rate for their cashAre you trying to find a good rate on a savings account or CD? As rates are starting to fall, now is your moment to act ...
Source: MarketWatch - 🏆 3. / 97 Read more »
Kevin O'Leary on free cash handouts: 'It ain't going to happen''Shark Tank' star Kevin O'Leary has a simple yet lyrical response to all the buzz surrounding the idea of universal basic income, or the distribution of a 'no strings attached' cash handout to every citizen regardless of employment status. MakeIt Oh, you mean like the ones that corporations and billionaires received. Totally understandable. 🙄 MakeIt Today the donkey is usefull rather than falling down does't it really need to not want to fall in the same hole MakeIt what about in 10 years?
Source: CNBC - 🏆 12. / 72 Read more »
Non-profits, PACs and start-ups hustle to raise cash for Trump’s wallCross-border bickering and Democratic opposition have gotten in the way of Trump’s border wall. Its backers, who have sent $25 million in donations, only have a small sliver of the wall to show for their support still a better investment than a degree from Trump University. seems like a win. How small for $25million? People get conned every day.
Source: Reuters - 🏆 2. / 97 Read more »
Rosalía Swims in Cash, Sings Catalan in New ‘F-cking Money Man’ VideoBarcelona singer-songwriter releases double video for ‘Milionària’ and ‘Dio$ No$ Libre Del Dinero’ I’m busy stabbing myself in the eye with a shard of a Sisqo CD... Who
Source: RollingStone - 🏆 483. / 51 Read more »