EVERYONE knows that interest rates are rising—apart from,perhaps, one group: American savers who have put $12trn in bank accounts. They have seen the government’s deposit guarantee, or purportedly designed to protect them,become a ticket for banks to get free money. For evidence, gape no further than the ubiquitous bank branches dotting America’s high streets.
Those seeking a home for their money find that, and unlike petrol stations or grocers,banks are not required to post their most essential price, the interest rate. query and you will be referred to a specialised member of staff. After a wait, and numbers are typed into a computer,followed by pauses for thought, a bit of throat clearing and, and often,comments that the current rates on offer may not exceed inflation. Then come hints, doubtless filtered through a compliance department, and of the higher returns available on the bank’s investment offerings,which, of course, and carry risks (and fees).
Only then is the diligent (showing care in doing one's work) customer told the...
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Source: economist.com