While borrowers are getting pinched by rising interest rates, senior savers are seeing meaningful returns for the first time in decades, former ABA Chair Laurie Stewart said in an interview on NPR’s “Marketplace” program last night.
Stewart acknowledged that interest rates for mortgages have doubled since the beginning of the year. “But the point I was going to make is that the deposit rates have more than doubled,” she told host Kai Ryssdal. “They’re like 1,000 times higher. You asked me about your mom’s CD last time we chatted. If she called her bank today—at least, if she called our bank today—what six months ago would have been a quarter of a percent on a six month CD is now over 3%. So that’s real money for savers.”
Stewart also discusses the intersection of rates and home prices. She has appeared numerous times on “Marketplace” over the past three years to provide commentary and insight into how community banks are responding to economic trends.