Yesterday'​s Wall Street Journal featured, "The Fed Raised Rates. Don'​t Expect the Same for Your Bank Deposits." It explained, "At some point, the Federal Reserve'​s rate increases will trickle down to savers, who have been getting next to nothing on their deposits for years. But it will continue to be a slow and uncertain process. When the Fed raises short-​term interest rates, as it did Wednesday, that increase usually flows through right away to the rates banks charge on credit cards, home-​equity lines of credit and some other types of loans. Deposits work differently. The rates that banks offer depositors on certificates of deposit, savings accounts and checking accounts are more a function of what the banks are willing to pay. So far, that isn'​t much. The Fed raised interest rates twice in the recent past, in December 2015 and December 2016 -- the only two increases in a decade of near-​zero rates. That made little difference to deposit rates." The piece adds, "This time, the banks don'​t need to compete for deposits given how flush they are -- so much so that some banks are asking certain customers to take their deposits elsewhere. Money-​market funds, which can compete with banks for customers' deposits, are less of a rival now too, said Steven Alexopoulos, an analyst at J.​P. Morgan. Regulatory overhauls have made them a less-​appealing option for investors shopping around for higher deposit rates."

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