FYI: There’s less free money to go around for banks.
After nearly three years of rate increases from the Federal Reserve, customers are pulling billions of dollars out of accounts that don’t earn interest and putting their money into higher-yielding alternatives. That will crimp banks’ ability to grow profits going forward.
The four largest U.S. banks— JPMorgan Chase JPM & Co., Bank of America Corp. BAC , Wells Fargo & Co. and Citigroup Inc. reported a combined 5% drop in U.S. deposits that earn no interest in the third quarter compared with a year ago. Customers withdrew more than $30 billion from U.S. bank accounts that don’t earn interest over the year that ended June 30, the first such annual decline in more than a decade, according to Federal Deposit Insurance Corp. data.
Regards,
Ted
https://www.wsj.com/articles/banks-golden-deposits-are-heading-out-the-door-1540200600?mod=hp_lead_pos5
