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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