Even if the Federal Reserve cuts its benchmark interest rate next year as predicted, banks may not in fact be able to realize lower deposit costs thanks to customer demand for high-yield products.
Cambridge Trust Co. executives said Tuesday that the bank expects its deposits won’t keep growing through the end of the year as lenders everywhere face an uphill battle against a weakening economy and rising interest rates on Treasury bonds.
Faced with pressure to pay higher rates, banks and credit unions are turning to special offers – with rates sometimes 3 percent or higher – to lock in deposits.
