Traders expect the Federal Reserve could start cutting rates as soon as September, sending returns on cash lower — but a few places still offer yields exceeding 5% to those willing to park their money. To that effect, Marcus by Goldman Sachs recently boosted the annual percentage yield on its 1-year certificate of deposit to 5.15%, reflecting a week-over-week boost of 15 basis points, BTIG found. One basis point is equal to one one-hundredth of a percent.
"Broadly we still expect online bank deposit rates to decline," said Vincent Caintic, an analyst for BTIG, in a Friday report. "Almost all the banks in our coverage group expect flat to declining balance sheets." Indeed, LendingClub recently slashed its 1-year CD APY to 4.2% — reflecting a cut of 95 basis points, Caintic found.
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Source: FXStreetNews - 🏆 14. / 72 Read more »
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