WASHINGTON—The Federal Reserve’s 100 basis points in rate hikes since December 2015 will cost credit card users an extra $6 billion in interest charges this year, notes WalletHub, which pointed out that on the deposit side, bank account APYs have barely budged over the same period.
According to WalletHub’s latest Credit Card and Banking Landscape Reports, the average APY for a personal branch-based checking account has increased just 8.85 basis points since the end of 2015. The average yield for a branch savings account has fallen by 0.79 basis points, WalletHub said.
The average APRs on credit cards that require good credit (18.66%) and excellent credit (13.56%) for approval are at all-time highs, noted WalletHub.
Other key findings from the reports:
- The average cash advance fee has increased by 57% in less than five years. “Credit card companies are clearly testing the limits of how much they can exploit cash-hungry customers,” WalletHub said
- Online-only personal savings accounts provide the market’s highest interest rates, offering 36% higher returns than the runner-up: personal checking accounts from credit unions
- Branch-based personal checking accounts yield an average of 9% more than their best online-only counterparts.