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There is some brutal competition for retail deposits right now and I think the banks are getting sophisticated about balancing interest rates and consumers’ who satisfice versus those who optimize.
They can probably afford to lose the latter.
They can probably afford to lose the latter.
There have been higher-yielding options for retail for at least 25 years now but I think mobile banking substantially changes the game, because there was previously some friction in getting money in and getting it out, and now it’s single digit taps on your always-on computer.
I wonder who decides to give this away (to the extent that regulators will let them)? Maybe Wealthfront?
Capital One, Marcus (Goldman Sachs), Ally, Amex, and at least a few others all have options here, but Wealthfront and maybe Robinhood seem to be indifferent to net interest.
Capital One, Marcus (Goldman Sachs), Ally, Amex, and at least a few others all have options here, but Wealthfront and maybe Robinhood seem to be indifferent to net interest.
