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interest on bank cd’s

By Terry Savage on May 23, 2022 | Taxes & Economy

with banks charging 5% or more on mortgage loans etc. why are they not required to pay at least a nominal interest to their savers of 2% on cd’s. I’ve heard you say they don’t need our money. Why
not? And when do you think this will change?

Terry Says

They don’t “need” your money because there is so much money swooshing around in the economy. We do not have a “command” economy where the government runs the banks! Thank goodness!! If the Fed starts sucking money out of the economy, then banks might raise their rates to attract deposits. But for the time being, low rates and no toasters!!

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