Why You Don't Feel Fed Rate Hikes in Your Savings Account

The video discusses the challenges faced by savers, especially those on fixed incomes, as Fed rate hikes do not significantly benefit savings accounts. It explores the impact of these hikes on loans and credit, noting that while auto loans remain competitive, credit card rates are rising. The video also highlights the lack of competition among big banks for deposits, despite some smaller banks offering better rates. It suggests that consumer behavior, such as moving money to online accounts, could influence bank competition and rates.

What is the main reason big banks are not offering competitive rates for savings accounts?

• They have a surplus of money and don't need more deposits.

• They are focusing on increasing loan rates.

• They are facing financial difficulties.

• They are investing heavily in new technologies.

How have Federal Reserve rate hikes affected auto loan rates?

• Auto loan rates are unaffected by Federal Reserve rate hikes.

• Auto loan rates have significantly increased.

• Auto loan rates have decreased dramatically.

• Auto loan rates have remained relatively low due to competition.

What is the relationship between credit card rates and Federal Reserve rate increases?

• Credit card rates decrease as Federal Reserve rates increase.

• Credit card rates are unaffected by Federal Reserve rate increases.

• Credit card rates are solely determined by individual banks.

• Credit card rates are directly impacted by the prime rate.

What might encourage American consumers to move their money to online accounts?

• Better customer service at online banks.

• More convenient mobile banking apps.

• Higher yields offered by online accounts.

• Increased fees at traditional banks.

What could potentially change the current financial conditions according to the video?

• A significant shift in consumer behavior towards online banking.

• A decrease in Federal Reserve rates.

• An increase in traditional bank fees.

• A new government policy on savings.