Even as Goldman Sachs and Ally Bank cut deposit rates, high-yield savings accounts still pay
But with an end to rate hikes for now, savers won't continue to see the same upward momentum, and as the probability of a rate cut increases so does the likelihood that those deposit rates will come down.was the first to cut its online savings rate, to 2.1% from 2.2%, in an announcement on June 25.
"After a period of increases, interest rates are on the downswing and are projected to fall further," a spokesperson for Ally said. "These market conditions impact all kinds of things, from mortgages to CDs to savings accounts. Based on these factors, we lowered the annual percentage yield on our online savings account."Days later, Marcus, the consumer finance arm of
, told customers it was also cutting the rate on its high-yield savings account, to 2.15% from 2.25%.2 million customersAcross the board, fierce competition has driven savings rates higher as online banks jockey for deposits. Until now, online-only banks such as Marcus and Ally have been able to offer the highest returns, thanks in part to lower overhead expenses than traditional banks.
As a result, "savers are still far, far ahead from where they were a few years ago," McBride said. Inflation is still running below 2% and consumers who can earn more than 2% are much better off than they were, he said.
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