The Era of Easy Deposits Is Over for Main Street Banks
Citizens Financial and Hancock Whitney are two of the many lenders who are now paying more to keep their depositors around.
PHOTO: Douglas R. Clifford/Zuma Press
It looks like the era of easy deposit is over for smaller banks, which serve a large portion of America's businesses and consumers.
In recent earnings reports, Main Street banks like Citizens Financial Group Inc. or First Horizon Corp. stated that they were having difficulty holding onto their customers' money as the Federal Reserve raised interest rates aggressively. Some lenders pay more interest on savings accounts to keep depositors. They also offer certificates of deposit.