Banks hike prime rates, but not deposit rates
Source: CNBC
Stashing cash in a savings account has yielded nearly nothing, aside from peace of mind, and that's not going to change much now.
On the heels of the Federal Reserve's widely expected quarter-point increase in its target funds rate Wednesday, Wells Fargo announced it would increase its prime rate the rate at which individual banks lend to their most creditworthy customers to 3.5 percent effective Thursday.
Other banks followed suit, including U.S. Bancorp, JPMorgan Chase, M&T and PNC. As of yet, the deposit rate, which is the interest rate banks pay to its account holders, will remain unchanged.
"This is typical of the big banks: Use market conditions to benefit themselves at the expense of their customers," said Ric Edelman, an independent financial planner. "Heads they win, tails you lose."
Read more: http://www.cnbc.com/2015/12/17/fair-banks-hike-prime-rates-but-not-deposit-rates.html