How hard the big banks are savers: Thanks to the Fed’s rate hikes, they’ve made billions in loan repayments.

• The three largest US banks received $50 billion in higher interest payments in Q2 2023.
• However, an analysis by Dailymail.com shows that no one has passed these rates on to savers
• None of the major banks offer more than 0.15% interest on their savings accounts.

Last quarter, the big three banks took in nearly $50 billion in income from higher interest charges — but none of them increased it on their savings accounts.

JPMorgan Chase, Wells Fargo and Bank of America this week piled on persistent interest rate hikes by the Federal Reserve, allowing them to raise the cost of borrowing — and record higher-than-expected payments on existing loans.

But analysis by DailyMail.com shows these high rates are not being passed on to their savers – prompting experts to look elsewhere for a better return on cash.

JPMorgan Chase and Bank of America offer a pitiful 0.01 percent yield on their regular savings accounts — while Wells Fargo offers a slightly better 0.15 percent.

By comparison, tech companies like Apple and Walmart-backed One have entered the savings space, offering yields of 4.15 percent and 5 percent, respectively.

This means that a saver with an Apple account is 400 times more likely to be interested than a Bank of America customer.

This week it was announced that JPMorgan Chase was the biggest winner of the second financial quarter of 2023.

The company posted a profit of $14.5 billion, a 67 percent increase compared to the same period last year. Net interest income — the money it generates from interest paid on loans to borrowers — was $21.9 billion, up 44 percent from last year.

It was a similar story at Bank of America, where profits rose 19 percent to $7.4 billion in the April-June period. It also beat analysts’ estimates of $6.9 billion.

It generated $14.2 billion in net interest income from interest paid, up 14 percent from last year.

Bank of America CEO Brian Moynihan said in a statement that earnings improved due to customer growth, which ‘offset important impacts from higher interest rates.’

Meanwhile, Wells Fargo — one of the nation’s largest mortgage lenders — saw its profit jump 57 percent to $4.94 billion. It generated $13.2 billion in net interest income — a 29 percent increase by 2022.

In contrast, Citigroup – which includes America’s ‘big four banks’ – posted a loss in the second quarter of 2023.

Statistics show how much money banks are giving after the decision to raise interest rates ten consecutive times in 15 months to tackle inflation.

The Fed’s funds rate is currently between 5 and 5.25 percent – after the decision to jump to another hike in June. Rates are expected to rise again at the next meeting on July 26.

As a result, banks were able to charge more money on loans, the loan rate is now hovering below 7 percent.

However, in theory, this figure should also easily determine the yield banks offer on savings.

According to data from the Federal Deposit Insurance Corporation, the average yield currently being offered by banks is 0.42 percent.

Financial experts have criticized banks for their reluctance to increase yields.

Jed Warshaw, host of The Ramsey Show alongside guru Dave Ramsey, told DailyMail.com: ‘Have you ever wondered why banks have tall buildings in all the big cities? Banks are not your friend!

They are greedy and in it to make profit for themselves.

She added that clients should look for high-yielding accounts or invest in the stock market.

And many savers seem to be heeding this advice by flocking to alternative platforms to get more yield.

In April, Apple announced the launch of a new savings account for its credit card customers at a competitive 4.15 percent.

The venture, which was carried out in partnership with Goldman Sachs, reportedly attracted more than a billion dollars in deposits in its first four days. About 240,000 new accounts have also been opened.

With an Apple account, a $1,000 saver stands to gain $41.50 in savings in the first year.

By comparison, a JPMorgan Chase or Bank of America customer would earn just 10p for the same amount – a difference of $41.40.

A JPMorgan Chase spokesperson told DailyMail.com: Our customers tell us they choose Chase for all the ways we can serve them, including our convenient branch and ATM network, our industry-leading digital solutions and security.

‘Chase has the most competitive CD prices in the market for customers looking to get more for their money.’

Bank of America and Wells Fargo did not respond to DailyMail.com’s request for comment.