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Why are bank savings interest rates rising recently?

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Just noticed in the last month or two a few examples like, Alliant from 1.00 to 1.10, SFGI from 1.06 to 1.21, Purepoint from 1.25 to 1.30, Dollar Savings from don't remember to 1.40. What's causing this? Worry that the stock market will crash? Trump policy's?

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Fed raising rates can affect interest rates all over.

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There's this little thing called Federal Reserve... just saying.

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Are you complaining?????

about time they raise the rates

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Fed raises rates so it costs more for the banks to borrow from them. That raises the banks costs so won't they offer less interest?

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atikovi said:   Fed raises rates so it costs more for the banks to borrow from them. That raises the banks costs so won't they offer less interest?
  You've got it backwards.  Fed raises rates generally means the banks offer various loans at higher rates, because no one is then willing to offer them at such low rates.  Banks then raise deposit rates, presumably to raise more capital to offer more of the now more lucrative loans (less than they raise rates on loans, though).  Spread between deposit and loan rates (profit) goes up at banks with higher interest rate environment.  That's partially why the banks' stocks have been rallying as the Fed has started raising rates.

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atikovi said:   Fed raises rates so it costs more for the banks to borrow from them. That raises the banks costs so won't they offer less interest?
Consumer deposits "compete" with the Fed.  Higher Fed rates give banks more incentive to draw in deposit capital.

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Glitch99 said:   
atikovi said:   Fed raises rates so it costs more for the banks to borrow from them. That raises the banks costs so won't they offer less interest?
Consumer deposits "compete" with the Fed.  Higher Fed rates give banks more incentive to draw in deposit capital.

So what will they do with it?  Don't the banks have plenty of money? Mortgage rates have been flat for years so not much demand for borrowing.

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It is a complex situation.

Online banks compete heavily for deposits. There are many reasons for this situation. One is ratios that banks must maintain in deposits (compared to what is loaned out however). Another is working capital to lend (borrowing from the Fed is possible, but sometimes not encouraged or recommended).

You have highly underestimated the growth in borrowing across the board. If you look at total personal debt (credit cards and the related including auto loans and other areas), borrowing continues to grow. People also continue to buy property.

Rasheed

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atikovi said:   Just noticed in the last month or two a few examples like, Alliant from 1.00 to 1.10, SFGI from 1.06 to 1.21, Purepoint from 1.25 to 1.30, Dollar Savings from don't remember to 1.40. What's causing this? Worry that the stock market will crash? Trump policy's?
  
These are primarily online banks and the increases in interest rate may be them competing with one another over customers. Stores markdown products to attract customers and banks raise interest rates or offer bonuses to attract business.

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