As investors await the Federal Reserve’s interest rate decision this week, MaxMyInterest CEO Gary Zimmerman joins Yahoo Finance Live to discuss the uneven pass-through of policy changes to consumers. He notes deposit rates react more swiftly to hikes than cuts — a dynamic called deposit beta.
Zimmerman says larger banks tend to adjust savings yields slowly if at all, retaining more margin. Smaller, faster-growing banks pass on rate cuts faster to attract funding. He stresses this makes shopping around for banks essential and that digital platforms, such as his own, can help find the highest rates amid uneven transmissions.
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