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I am happy to be contradicted by better specialists than me of US banks. But aren’t the vast majority of loans in the US fixed rate with no or little prepayment

by cm2187 6y ago

I am happy to be contradicted by better specialists than me of US banks. But aren’t the vast majority of loans in the US fixed rate with no or little prepayment penalties? If that’s the case the interest rate risk of these banks is not trivial and certainly not a simple pass-through of overnight rates.

tssva 6y ago
The article isn't about loan interest rates but the interest rate banks offer on deposits.
- cm2187 6y ago
  Where do you think the bank gets the money for paying interest on deposits from?
  - dsr_ 6y ago
    They have sofas in their lobby, and they look under the cushions. I just checked. US Bank's basic savings account offer 0.01% APY and costs $4/month.