ANALYSIS; High-yield savings accounts are squeezed; Fed interest rate cuts are meant to stimulate spending. But will low returns instead push people to hoard cash?
Before the financial crisis, the term "high-yield savings account" would have been considered an oxymoron.
Today, such products are thriving.
After the Federal Reserve dropped its benchmark lending rate to near-zero in late 2008, big U.S. banks paid virtually nothing to anyone who parked money with them. That presented an opportunity for new, mostly online entrants to swoop in and offer much more. After years of getting zero, customers viewed a 2% interest rate with backing from the ...