Are High-Yield Savings Accounts Unfair?
Are High-Yield Savings Accounts Unfair? Sunday November 23, 2008#spacer{clear:left}#abc #sidebar{margin-top:1.5em}zSB(3,3)Some banks offer especially high returns on savings and CDs. Is this unfair, immoral, or insane? Competitors claim that small banks are snatching up deposits by offering the highest rates. This helps keep them afloat, but other banks have a hard time keeping assets on the books – a dangerous thing in today’s world. The Bankdeals blog recently covered the topic, and an interesting discussion follows. While banking executives call high-yield savings rates “insane”, an astute commenter retorts: “The insane interest rates are the interest rates that banks charge on their credit card balances.” The discussion also gets into how FDIC insurance puts a safety net under banks fighting for deposits. If things go wrong, the insurance fund steps in – so people are more likely to cha
