Are You Prepared for Rising Deposit Rates?
Net Interest Margin will be hit with rising rates. How? See M$ Economic Report below:
State Data Shows How Low Deposit Rates Really Are
Lake Forest, IL (Groundhog Day, 2021) Current deposit rates are lock step with Treasury rates and have been declining for over a year since the coronavirus invaded the United States. Is Punxsutawney Phil’s forecast a sign of danger?
Moebs $ervices, an economic research firm, did a survey of 9 essential deposit services representing over 90% of all bank, savings bank, credit union, and Fintech financial deposit services in November of 2020.
All 9 services rate prices were averaged to obtain one unique average of deposit service prices. It is important to recognize this is the average of the sum all 9 deposit service rates. This is not the cost of funds but the average price for deposit services for November 2020. Deposit rates have fallen since November.
The results show distinct how low deposit rates are. Room only for rising rates. READ FULL ARTICLE
Written By: m.moebs
Date Posted: 2/2/2021
Number of Views: 179