Banks Threaten To Charge Customers For Deposits

News: Top banks in the US have threatened to charge customers for depositing money if the Federal Reserve opts for slashing interest payments on the money loaned to the federal government. 'Right now you can at least break even from a revenue perspective. But if the Fed cuts the rate they pay to banks, it would turn it into negative revenue and banks would then be disincentivised to take deposits and potentially charge for them,' reports The Financial Times, citing leader of one of the top five US banks (The Daily Caller). The move is being considered by the Federal Reserve to offset a possible reduction in money that is pumped into the economy.

This article is tagged to:
Geography: United States

Access all of our latest analysis, data and forecasts - request a trial