The Wicked Undercurrent of Overdrafts
Deposits now act like bonds. Deposit rates are changing like bond rates.
All deposit rates are falling and have for much of 2019.
Why can’t the Fed see this?
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Why Don’t Depositories Want OD Price Known?
Lake Forest, IL (September 23, 2019) The overdraft price remains at $30, yet 52% of Depositories keep the OD price off their website. “The median overdraft price (OD) has not changed in seven years,” states Michael Moebs, Economist & CEO of Moebs Services – an economic research firm, who did the OD Study. “Very few products or services are this stable for this long. Yet there is a wicked undercurrent in overdrafts with more than 50% of banks and credit unions not reporting their OD price.”
The Moebs OD Study includes all depositories $500 Million and greater. Mathematics & Statistics Professor George Easton of Emory University in Atlanta did a statistical sample of all depositories below $500M. 2,906 depositories are included in the OD Study, or ten times larger than any other OD Study ever done. “The precision of this OD study is close to 99%,” notes Moebs. READ FULL ARTICLE
Written By: m.moebs
Date Posted: 9/24/2019
Number of Views: 561