Banks hike prime rates, but not deposit rates
Source: CNBC
Stashing cash in a savings account has yielded nearly nothing, aside from peace of mind, and that's not going to change much now.
On the heels of the Federal Reserve's widely expected quarter-point increase in its target funds rate Wednesday, Wells Fargo announced it would increase its prime rate — the rate at which individual banks lend to their most creditworthy customers — to 3.5 percent effective Thursday.
Other banks followed suit, including U.S. Bancorp, JPMorgan Chase, M&T and PNC. As of yet, the deposit rate, which is the interest rate banks pay to its account holders, will remain unchanged.
"This is typical of the big banks: Use market conditions to benefit themselves at the expense of their customers," said Ric Edelman, an independent financial planner. "Heads they win, tails you lose."
Read more: http://www.cnbc.com/2015/12/17/fair-banks-hike-prime-rates-but-not-deposit-rates.html
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"Fuck the customer."
It's a common business model.
