Big banks are making a lot less money from their deposits than they did before the coronavirus pandemic.
FILE PHOTO: Four thousand U.S. dollars are counted out by a banker counting currency at a bank in Westminster, Colorado November 3, 2009. REUTERS/Rick Wilking/File Photo/File Photo
The plunge came after the Federal Reserve pushed down overnight interest rates in March to near zero to support the economy’s struggle against the coronavirus pandemic. Bank of America Corp , which boasts the most consumer deposits of U.S. banks, said profits from consumer deposits fell to $785 million from $2.2 billion a year earlier.
After the COVID-19 outbreak, banks were flooded with new deposits. But they were reluctant to invest the money for fear individuals and businesses would quickly take it back. Bank of America said it put the money into cash and cash-like accounts earning a bare 0.1%.
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