Online banks continue to increase deposit rates - Goldman Sachs

Goldman Sachs analyst Richard Ramsden highlighted that online banks continue to increase deposit rates.

The analyst commented, "We update our weekly Deposit Rate Monitor to capture the industry's retail deposit rate movements coming off of record lows in 3Q21, with the impact of Fed hikes (+300bps YTD) continuing to increase deposit pricing, though primarily at the online banks and in CDs thus far. Over the past week, online banks increased savings rates by 5-10bps, and CD rates by up to ~82bps. Among large cap and regional banks, BKU raised 1yr CD rates by 45bps and ZION raised CD rates by 4-9bps across tenors, while rates across the rest of the banks remained consistent over the past week.

Over the past month, we saw an accelerated decline in deposit balances (-1.4% MoM), with both domestic and foreign banks reporting outflows of up to -4.9% MoM."

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