February 23, 2023· 38 min

Why Interest Rates on Savings Accounts Are Still So Low

Joe Abate

Orality

Model

65%

Oral-dominant (speeches, podcasts, storytelling)

Speaker Breakdown

HostTracy Alloway(1,195 words)

M:93%

HostJoe Weisenthal(1,175 words)

M:28%

GuestJoe Abate(3,535 words)

M:27%

Oral Indicators

Agonistic22%

literally, completely, basically

Engagement60%

you, our, your

Memory Aids100%

listen, now, like

Repetition100%

right (81x), banks (64x), know (62x)

Parallelism90%

And I'm Joe Weisenthal...., So the average annual percenta..., So if you could get four and a...

Sound Patterns100%

68 question(s), alliteration: "markets move", alliteration: "barclays brief"

Formulaic Phrases6%

you know what, i mean

Literate Indicators

Hedging11%

maybe, could, might

Passive Voice7%

is supposed, is supposed, are supposed

Abstract Nouns21%

investment, recommendation, question

Subordination13%

because, however, nonetheless

Sentence Length39%

Avg: 14.8 words/sentence

Word Complexity49%

investment, analyze, anticipate

Academic Markers4%

according to

Impersonal Style40%

408 personal pronouns found

Descriptive Style90%

literally, completely, currently

Description

The Federal Reserve has been raising benchmark borrowing rates at the fastest pace in decades, but the interest rate paid out to millions of people with bank accounts is still stuck at almost zero. According to data from Bankrate, the average interest rate on savings accounts is just 0.23%. So what's going on? Why have many banks so far avoided raising what they pay out to depositors even as the Fed hikes, and will that eventually change? What does it mean for the financial system and also economic policy given that higher rates are, in theory, supposed to encourage less spending and more saving in order to curb higher inflation? On this episode, we dig deep into the making of bank deposit rates with Barclays strategist Joe Abate. See omnystudio.com/listener for privacy information.

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