>Why are banks in US not increasing interest rates for checking or savings account for their retail customers when inflation is 8%+ and prime rate 4%+? The ban

>Why are banks in US not increasing interest rates for checking or savings account for their retail customers when inflation is 8%+ and prime rate 4%+? The banks know they dont want you keeping money in either of those accounts. It's a losing game for both you and them and so they make the advertised rates ridiculous to make you not go into them. >Is this pure greed or by govt regulation or something else. Would like to get a banker/financier’s perspective. Focusing on the bank pov. If you let $10,000 sit in a savings account. They cant give you 8%. Even if they give you 4% you are losing 4% in real yields. You shouldn't do that. But it goes further. If the banks all give 1%. You decide the put the money elsewhere.They actually know they will benefit from that more than ever giving you a reasonable losing real yeild rate. This has much more to do with 1980s repeating and the nature of economics from the population pyramids. Too many people are heading into retirement and moving their investments into "safe" investments. So retirement funds are obligated to buy bonds and similar. Which the opposite side of that transaction requires someone to be issuing the bond but the homelanders aren't buying. So rates are very low and inflation will be high. Banks are optimized around transactions; doesn't matter about sizes. They just want transactions to be happening. They want things/purchases/experiences to be happening and money sitting in accounts is antithetical to their goals. It is greed in a way but not the cigar smoking fat monopoly man kind of greed. From government point of view. They are a bunch of idiots who made the bad situation so significant worse. As they always do.