Synchrony Financial raised the annual percentage yield on its 12-month CD by 30 basis points to 4%. According to S&P Global Market Intelligence, 639 banks were marketing rates above 3.5% on a one-year, $10,000 CD as of June 26, up from 583 at the end of the first quarter. Forty banks now offer above 4%, a doubling since the end of the first quarter. This rise in CD rates creates pressure on US banks’ net interest margins over the next 12 months, but analysts believe the sector’s earnings will continue to grow.
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