Why your not getting paid interest on your bank accounts

Danbury CT

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Casman, Ryan To:you Details Good Afternoon Mr. ---- ------- I hope you have been well since we spoke last week. I appreciate your patience while I gathered some information to answer your questions regarding rising interest rates and bank accounts. As we discussed, the fed funds rate, which raises the interest on reserve balances paid to banks, is set by the Federal Reserve, although it does not impact all interest rates in the same way. Importantly, neither mortgage rates or deposit rates are pegged to the fed funds rate, although they are impacted by it changing. Mortgage rates, for instance, are typically set above the fed funds rate due to the higher risk involved in purchasing property assets. The higher interest rate provides some security to the lender, and when the interest rate generally goes up, mortgage rates go up quickly in response. Deposits don’t operate as assets like mortgages do, which is why they react more slowly to changes in the fed funds rate. Deposit rates are also typically lower than the fed funds rate, and since the latter was close to zero for several years, it will take a little longer for banks to adjust the rate upward. If you would like to do more reading on this topic, you may find either of these articles to be useful. Let me know if I haven’t answered your question properly, or if you have additional questions or concerns. I’m happy to answer them to the best of my ability and relay any comments to Congresswoman Hayes. Best Regards, RYAN CASMAN. Description automatically generatedwww.hayes.house.gov RYAN CASMAN | LEGISLATIVE ASSISTANT Office of Congresswoman Jahana Hayes (CT-05) 1415 Longworth HOB, Washington, DC 20515 C. | O.