Big banks are taking heat for paying low rates on idle cash

Published On Aug 30, 2024, 8:19 AM

Big banks are currently facing criticism for offering low interest rates on checking and savings accounts despite rising interest rates in the broader economy. Many consumers are unhappy with what they perceive as low compensation for their deposits when they could potentially earn higher returns elsewhere, such as in high-yield savings accounts or investment options. As interest rates from the Federal Reserve continue to increase, there is pressure on banks to adjust their rates to retain customers who are looking for better returns on their idle cash.