Here's how the Fed's rate cut will affect your high-yield savings account. (via CNBCMakeIt)
While the rate cut will likely help consumers with high credit card debt by lowering the interest rates, it's not great for those who are using a high-yield savings account. "The only real losers in all of this are people with online-only savings accounts," WalletHub CEO Odysseas Papadimitriou tellsYet major online banks already started dropping their rates in June.from 2.20% to 2.10%, while Marcus by Goldman Sachs lowered its savings account rate from 2.25% to 2.15%.
Betterment's interest rate will also move in a similar direction to the Fed rate — although customers whowill see a higher rate than those who opted out. The current, non-promotional variable rate for the Betterment Everyday Savings is 2.43% APY. "The very structure of the account is that the [interest] rate floats with Fed funds," Adam Grealish, Betterment's director of investing, tells CNBC Make It.
In a statement to CNBC Make It, Ally Bank said Wednesday it "continually monitors market conditions, including the health of the economy, the current federal funds rate, the competitive environment and more when determining interest rates on deposit products." Marcus did not immediately respond to request for comment on its savings account interest rates.
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