bank rates

J.P. Morgan Chase Plans To Increase Some Deposit Rates … But Not Those Paid To Us

In a sign that the Federal Reserve’s recent decision to start pushing interest rates higher may be having an impact, however slight, on deposit account yields, The Wall Street Journal has reported that mega bank J.P. Morgan Chase will increase rates paid on certain deposits of institutional customers next month.

Chase Bank sign

The higher rates will only apply to so-called “operating deposits” – those deposits considered by regulators as being “stickier” (i.e., less risky) because of associated services provided by the bank to the customer, such as payroll and funds collection.

Unfortunately, according to the Journal report, the higher rates will not apply to retail accounts (i.e., the deposits made by people like you and me).

However, as we noted earlier this month, the appearance of two competitive brokered CDs from Wells Fargo on the website of showed perhaps some inkling that the too-big-to-fail gang of banks may be considering reappearing in the retail deposit account market now that the Fed is increasing rates.

Of course, we may be grasping at straws here. For example, when the Journal asked other big banks about plans to raise deposit rates, the best answer it could get was “no comment.”

Yet maybe there’s some reason for optimism that, with a few more target rate increases and a bit more inflation, we’ll eventually see some meaningful increases in the yields on savings accounts and certificates of deposit.

In the meantime, we’ll keep scouting around for promotions.

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