Customers have been begging banks to pay out more for deposits for months as the Federal Reserve has increased interest rates.
Analysts now claim that lenders appear to be changing their offers in an effort to keep customers’ cash parked in their accounts for a longer period of time after the banking crisis shook markets last month. American banks are enticing depositors with signing bonuses in exchange for new account openings or recurring deposits of funds.
The promotions are taking place at a time when customers are nervous following the failures of Silicon Valley Bank (SVB) and Signature Bank last month, which led them to withdraw USD 119 billion from smaller institutions. By using additional strategies, banks are also attempting to keep customers.