US Banks See Customers Demanding Higher Yields on Deposits

The country’s two largest banks just put rivals on notice: they’re finally prepared to pay out more to savers demanding higher yields on their deposits.

After a year of relentless rate hikes by the Federal Reserve, JPMorgan Chase & Co. and Bank of America Corp. took turns on Friday warning that they’re considering boosting the amount they pay out on the trillions of deposits they have sitting on their balance sheets. The moves are poised to weigh on net interest income, the revenue banks collect from loan payments minus what they pay depositors.