Finance
Big Banks Are Finally Giving Depositors a Cut of Windfall From Fed Hikes
- Top US lenders previously showed restraint in rewarding savers
- Now their deposit costs are surging as they earn more on loans
A Wells Fargo bank branch in New York.
Photographer: Angus Mordant/BloombergThis article is for subscribers only.
As big US banks earn more from lending, the question has gnawed: When will depositors see their reward? It’s finally starting.
Interest expense at Wells Fargo & Co. and JPMorgan Chase & Co. climbed a whopping 465% at each of the firms in the second quarter, the banks reported Friday. At Citigroup Inc., the firm’s executives lamented that they’re having to give both small and large customers more to stay put.