![]() The big winner from that wake up call? Money market mutual funds. Yet the riveting drama-complete with a Twitter fed bank run – focused public attention on the reality that money can be moved quickly and easily, and that bank deposits that exceed the $250,000 guaranteed by the Federal Deposit Insurance Corp. That’s the highest level since September 2007 and the fastest pace of increases since Fed Chairman Paul Volcker was fighting inflation way back in 1980.Īll but 0.25% of that 5% percentage point increase came before the failure of Silicon Valley Bank this past March 10th. ![]() banks) 10 times–from a range between 0% and. Since March 2022, the Fed has raised its target “federal funds” rate (the rate for overnight lending between U.S. “Some of these individuals have had tens of thousands sitting in cash accounts that have been earning nothing for the past several years.” “There's definitely excitement with the Millennial generation that they can now actually start earning interest on cash money,” says 40-year-old Jonathan Kiehl, a CFP who runs his own financial planning firm out of Lancaster, Pa. By contrast, just 23% of customers older than 40 had moved money, and they had shifted just 35% of their deposits. Those 40 and under were the most footloose, with 38% reporting they had moved on average of 43% of their deposits. Power Financial Health & Advice Satisfaction Study reports that 29% of bank customers surveyed in February and March said they had moved deposits away from their primary banking institution in the past 90 days. “I remember my father telling me ‘oh, put your money in the bank and it will work for you.’ But that's never been true in my adult life until now.” “In my adult lifetime I haven't seen a landscape where you can actually earn significant money on your cash,” says Julia Colantuono, a 31-year-old Certified Financial Planner who runs her own practice out of Westborough, Mass. Jonathan Kiehl, Certified Financial Planner “There's definitely excitement with the Millennial generation that they can now actually start earning interest on cash money.”
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