Re:Why America will soon see a wave of bank mergers
by ericpauley on Tuesday May 02, 2023 @03:56PM
(#35793244)
If the loan % is lower than a savings account then there is no/0/zero risk, so long as you stay under FDIC limits. Your deposit earns money and is backed by the full faith and credit of the United States government.
[ Parent
| on HN ]
Re:Why America will soon see a wave of bank mergers
by stanleydrew on Tuesday May 02, 2023 @04:40PM
(#35793875)
The loan will usually be at a fixed-rate, while the interest paid on your deposits will fluctuate. So there is still risk that your net interest margin will go negative at some point.
Re:Why America will soon see a wave of bank mergers
by ericpauley on Tuesday May 02, 2023 @05:23PM
(#35794403)
Get a CD or buy treasuries with a matched maturity date. Or if you don’t want that and the savings rate goes below you can pay off any time (check your terms).