Are You Earning Interest on Your Bank Deposits?

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For more than 10 years, investors have experienced an extremely low interest rate environment and have gotten accustomed to savings, such as bank deposits, paying very little interest. Heading into 2022, the Federal Funds Rate as determined by the Federal Reserve was set at 0% as Fed officials maintained accommodative monetary policy heading out of the pandemic leading to high levels of inflation.

Since then, the Fed has raised interest rates substantially in an effort to get inflation under control. Recently on July 26th, policymakers raised the Fed Funds rate to a target range of 5.25% to 5.5%. These policy moves have provided more flexibility for investors seeking to earn interest on their fixed income investments as well as their cash deposits.

Despite the increase in interest rates, many banks continue to pay extremely low interest and in some cases continue to offer 0.01%. Money market funds, short-term US government securities, and CDs on the other hand are offering yields near 5%. In an environment where inflation continues to exceed 4%, we encourage savers to consider all options at their bank or in their investment accounts to make sure their cash savings is generating income that is consistent with current market rates. As always if you would like a specific conversation, do not hesitate to reach out to your Gryphon Advisor.  


This material is provided by Gryphon Financial Partners, LLC  (“Gryphon”) for informational purposes only.  It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product.  Facts presented have been obtained from sources believed to be reliable.  Gryphon, however, cannot guarantee the accuracy or completeness of such information.  Gryphon does not provide tax, accounting or legal advice, and nothing contained in these materials should be taken as tax, accounting or legal advice.  Individuals should seek such advice based on their own particular circumstances from a qualified tax, accounting or legal advisor.

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