Let the rate wars begin.
Since the Federal Reserve last raised interest rates, in December, a few banks and credit unions have aggressively increased the rates they pay on savings accounts, money markets and short-duration certificates of deposit.
This new environment for deposit products creates risks for banks that stand pat. Many community banks have not yet passed along the Fed’s rate hikes to depositors, a decision that could lead them to lose customers
to the banks and credit unions that are setting the pace.
To be certain, only a few institutions have quickly raised deposit rates thus far. They are primarily online-only banks, including Goldman Sachs’ Marcus and Capital One 360, followed closely by some of the nation’s largest credit unions.
Large, regional and midsize banks, to this point, have largely stayed on the sidelines.
Data compiled by RateWatch provides some insight into the latest trends, including which depositories have been most aggressive in raising rates and which ones have lagged behind. Here are some of its key findings.