WASHINGTON—While credit card rates increased following the Federal Reserve’s recent rate hike, a new study shows that deposit account rates have not reacted much to the December move by the Fed.
A recent report by CardHub indicated that issuers moved in late December, raising card rates to the tune of $1.3 billion in additional annual borrowing costs.
WalletHub’s Q4 2015 Banking Landscape Report shows that interest rates on savings accounts barely changed during the fourth quarter of 2015.
“Financial institutions have not been quick to increase deposit account rates in the wake of the Fed’s hike,” WalletHub stated.
The report also shows that personal online-only savings accounts provide the market’s highest interest rates, yielding 0.61% on average.
While inferior to online-only savings accounts, credit union savings accounts continue to offer market-leading interest rates among branch-based institutions, providing more than twice as much value as regional banks and almost five times more value than national banks, WalletHub noted.