KGMI News
By Mike Davis
BELLINGHAM, Wash. – Banks are seeing pressure to decide if they need to raise the interest rates they pay on deposits – now that the federal reserve is raising rates above zero.
The fed has made four rate increases this year with maybe one more expected.
The Wall Street Journal reports low deposit interest rates may continue though.
Low demand for loans means banks can’t make a lot of money charging interest – so they can’t pay a lot on deposits to make those loans.
The CEO of First United Bancorp said recently that past experience shows it may take another couple of fed rate increases before banks start paying more.