U.S. Banks Using Promotions to Encourage Customers to Deposit Funds, Say Analysts

For months, consumers have clamored for banks to pay out more for deposits as the Federal Reserve raised interest rates. Now analysts say after the banking crisis shook markets last month, lenders appear to be rejigging offers in an effort to keep customers’ cash parked in their accounts for longer.

U.S. banks are trying to woo depositors by offering signing bonuses to open new accounts or deposit money on a regular basis. The promotions are running at a time when the failures of Silicon Valley Bank (SVB) and Signature Bank last month spooked customers, prompting them to move $119 billion out of smaller institutions.

Source : U.S. Banks Using Promotions to Encourage Customers to Deposit Funds, Say Analysts