It is natural for people to want more for their savings as rates rise. Over 40% of respondents said they would consider opening a new savings account for a rate of 1%, and over 60% would consider it for 2%. That is a contrast to roughly 4% and 12% growth in 2021 and 2020 by a similar point in the year, respectively. Banks with any deposit outflows might “likely pull the rate lever sooner,” they wrote. It is still early in the rate cycle, but investors in banks, brokerages and asset managers should be watching weekly tracking figures, online savings rates and even window stickers in bank branches very closely.

Source: Wall Street Journal May 09, 2022 19:29 UTC