Banks Come Under Pressure on Rates From Online Competitors

Ally Bank, Goldman Sachs GS Bank and Sallie Mae Bank are all paying much higher rates for deposits which can put brick and mortar competitors in a tough spot; banks typically lag a bit when it comes to rates so their current loans can reprice and profits are not hit; though they could lose deposits if they wait to long to raise rates as customers will move to the better rate; Fitch Ratings released a report Wednesday showing online bank rates were 1.18 percent versus brick and mortar rates of 0.075 percent. Source.

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