NEW YORK—Some major card issuers are employing a new strategy to raise liquidity levels by also offering attractive savings accounts to increase deposits.
“With large swaths of customer relationships, well-designed strategies to spawn deposits can expand the cardholder relationship and improve bank liquidity,” Payments Journal reported.
Many of the credit card banks are offering high-yield savings accounts, Payments Journal noted.
“You might not find a branch bank on every street corner, but these institutions have mastered the art of fast money movement, ACH, and direct deposit,” Payments Journal added. “A Discover Online Savings Account will pay you a whopping 4.30%. At Capital One, you will find a high-yield rate of 4.3%, with American Express High Yield Savings running slightly behind at 4.15%.”
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