'Sticky' deposit rates could cost US households dearly when Fed raises rates


The poorest US savers lose up to $100 billion a year due to 'sticky' interest rates on deposit accounts, according to a new working paper from the Federal Reserve's Finance and Economics Discussion Series (FEDS).

The paper, Sticky Deposit Rates by John Driscoll and Ruth Judson, examines the dynamics of 11 different deposit rates for a panel of more than 2,500 branches of about 900 depository institutions observed weekly over 10 years.

The authors say they "replicate previous work showing that

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