Bloomberg writes "U.S. Banks Pay Depositors Record Low Rates, Market Rates Says". The piece says, "U.S. banks, such as Citigroup Inc. and Bank of America Corp., are paying savers the lowest average rates on record amid elevated joblessness and weak loan demand, data collected by Market Rates Insight shows. Rates paid on interest checking, savings, money market and certificates of deposit fell in July to a national average of 0.99 percent, the San Anselmo, California-based data company said in a report released yesterday. That's a record low for available data, said Dan Geller, the firm's executive vice president." Bloomberg quotes Geller, "When lending is soft, there's less need for deposits. Banks usually don't say 'No' to deposits, but they will pay the minimum that they can."
