The Wall Street Journal writes "Don'​t Expect Rising Interest Rates to Boost Your Savings Account." The article explains, "Interest rates are about to rise. Savers shouldn'​t get their hopes up. The Federal Reserve has signaled it will raise rates in March, the first in what is expected to be a series of increases this year. Higher rates usually mean bank customers stand to make more on their deposits. Not so this time. Banks have little incentive to raise the interest they pay on deposits because they simply don'​t need the money. Government stimulus plumped up Americans' bank-​account balances, and companies are flush with cash. Total deposits at U.​S. commercial banks have swelled to about $​18.​1 trillion, up from about $​13.​3 trillion at the start of 2020." The piece explains, "The average rate on a savings account at the largest U.​S. banks stood at roughly 0.​06% at the end of last year, according to Bankrate.​com. Many high-​yield savings accounts, which offered 1.​5% or more before rates headed toward zero in early 2020, now offer rates around 0.​5%. On fourth-​quarter earnings calls last month, bank executives said those rates aren'​t likely to move in tandem with Fed increases this time around. The '​overall rate paid will be lower in this next rising-​rate cycle,' said Jenn LaClair, chief financial officer at Ally Financial Inc., which offers a high-​yield savings account." The Journal quotes Pete Gilchrist of Curinos, "You'​re not going to see deposit rates jump with any sort of magnitude until banks have many more loans on the books than they do today." It adds, "​Rising rates might nudge some deposit customers to move a chunk of their money into higher-​yielding investments. That could prompt some banks to raise deposit rates."

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