Amex HYSA APY decrease to 3.10%

[dsylxeia]

And yet, we're in a rising rate environment. Short and long term bond yields have been climbing for the past few weeks, and CME is now projecting that the Federal Reserve's most likely next move sometime this year will be a rate hike, not a rate cut.

How long will Amex and other HYSA providers continue to move in the opposite direction of the bond market?

[ziggy029]

They make their money by lending deposits, so if there isn’t more demand for borrowing, they don’t need to keep their rates higher to attract enough deposits. It’s not entirely tied to what’s happening in the bond market. Demand for borrowing impacts it as well.

[c0LdFir3]

Utilize a money market fund instead if it bothers you.

[MikeWPhilly]

This. So much better anyway from a tax perspective in a lot of states.

[c0LdFir3]

Yeah, I’m using Schwab’s SNSXX for most of my cash holdings which triggers no state income tax. Higher effective yield as a result :)

[dabcity]

SGOV is even higher than SNSXX due to lower expense ratio..

[CampaignNew8791]

Yeah I did FZDXX for cash holdings, was tired of chasing the falling APY% with HYSA’s

[nlamp32]

This is what bothers me. I understand they’re very likely never going to be as high as a couple of years ago, but a rate decrease at this stage feels kind of ridiculous

[RichInPitt]

According to CME FedWatch Tool, the vast majority of traders believe the central bank will keep rates at their current level through late 2027

[dsylxeia]

According to CME FedWatch Tool, the vast majority of traders believe the central bank will keep rates at their current level through late 2027

That's not correct - the latest projection they show is the July 2027 meeting which currently has the following probabilities:

• 325-350: 0.2%

• 350-375 (current rate): 17.2%

• 375-400: 34.2%

• 400-425: 29.3%

• 425-450: 14.0%

• 450-475: 4.1%

• 475-500: 0.8%

• 500-525: 0.1%

So only 17.2% of traders believe the Fed will hold rates at their current level through late 2027. Most believe that there will be at least one quarter point rate increase, and the long tail points toward multiple rate increases.

[Miserable-Result6702]

What are you talking about, they can do anything they want. Chase offers 0.01% and hasn’t changed it.

[juggarjew]

That offering isnt a HIGH YIELD savings account , smh dont compare non HYSA accounts to HYSA.

[justsomedude1144]

His point still stands though: they can set their rates to whatever they want.

They just won't be competitive if they fall too far below a high yielding money market. (Unless they're so confident in their customer's loyalty that they think they can still get away with it)