'For the last decade, there have been so many years of low rates that a lot of consumers have been conditioned to low rates and may not shop around like they used to for higher rates, especially at brick-and-mortar banks where you don't get much benefit for shopping around.' A bright spot: Online accounts 'A lot of people put the extra savings into banks,' Tumin noted. Savings jumped during the pandemic as Americans cut back spending on travel and entertainment amid the government lockdowns, while infusions of cash via stimulus checks and pandemic aid helped bolster their cash cushions. In essence, the banks are flush with cash, which they use to fund their loans. The reason, Tumin said, boils down to the fact that traditional banks haven't had to raise rates to lure customers, given a surge in deposits throughout the pandemic. For instance, the average yield for brick-and-mortar savings accounts in February 2019 was 0.2%, compared with the September 21 average of 0.13%.
