Because banking is sticky. People are more reluctant to change banks than cell phone providers. Consider a big bank like BofA with $2T in deposits. Let’s assume 1/3 is just going to be your average Joe or Joe’s plumbing with 10-20k in checking accounts and another 20k in an emergency savings account. Those accounts are yielding 0.02% currently and have been (or less) for a while. So the price to service these accounts is 130M annually. If they were to just automatically pay a competitive 3-4%, that 130M goes to $20B. They know they are too big to fail and if they experience a run the fed will are in, which they have already. Large banks have literally no reason to pass along a good interest rate to customers bc, frankly, they don’t want their deposits.

This. But this is boring. Weeklies and theta gang is more fun.

In fairness to OP and in gratefulness to all here, he’s learning more by posting this than most people will stirring though 2-3 college econ classes.

Sic burn

Unless you are trading in a retirement account, the IRS sees all my trades at some point anyway. So who cares?