By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
ProbizbeaconProbizbeacon
  • Business
  • Investing
  • Money Management
  • Entrepreneur
  • Side Hustles
  • Banking
  • Mining
  • Retirement
Reading: Bank Mergers Are Booming. Here’s Why Savers Should Watch Their Wallets
Share
Notification
ProbizbeaconProbizbeacon
Search
  • Business
  • Investing
  • Money Management
  • Entrepreneur
  • Side Hustles
  • Banking
  • Mining
  • Retirement
© 2025 All Rights reserved | Powered by Probizbeacon
Probizbeacon > Banking > Bank Mergers Are Booming. Here’s Why Savers Should Watch Their Wallets
Banking

Bank Mergers Are Booming. Here’s Why Savers Should Watch Their Wallets

June 3, 2025 6 Min Read
Share
6 Min Read
Bank Mergers Are Booming. Here's Why Savers Should Watch Their Wallets
SHARE
Image of a person's hands holding an open walled and pulling money from it.

Images by GettyImages; Illustration by Bankrate

Big bank mergers are starting to pick up steam in 2025, and history shows that’s not typically good news for savers. The recent wave of consolidation in the banking industry could spell trouble for your interest rates, account terms and overall financial choices.

As a reporter who has gained some keen insights on banking, covering finance for more than a decade, I’ve seen how consolidation typically impacts consumers. I’ll break down what’s happening now, why it matters for your savings and what steps you can take to protect your money.

The merger wave is gaining momentum

The mega-merger of Capital One and Discover that had been on ice under the administration of President Joe Biden was approved by U.S. bank regulators last month. Less than two weeks after the announcement, numerous small, midsize and large financial institutions had announced their own deals.

In April, nine U.S. bank deals totaling nearly $3 billion were announced, marking the highest monthly total by aggregate deal value since December 2021, according to S&P Global Market Intelligence data.

Data show that banks had already been gearing up for a changing regulatory environment. Through the end of February, 19 bank deals worth a combined $985.5 million were announced, an increase of 50 percent from the same period in 2024.

We’re seeing not just a steady pace of deals, but also a fundamental shift toward larger, more significant mergers.

Why does banking consolidation matter for everyday Americans?

If history is a guide, when banks come together it typically signals lower interest rates and reduced options for savers. A 2011 study of research on bank mergers from the Federal Reserve Bank of Cleveland found that deposit rates of merging banks “drop almost immediately after the merger.”

See also  High-yield savings rates today: April 21, 2025 | APYs remain competitively high

This makes sense. Bank consolidation typically results in fewer institutions competing for consumer deposits. When there’s less competition, banks have less incentive to offer higher interest rates or innovative products to attract and retain customers.

As banks merge, especially in local markets, consumers may find fewer choices and less aggressive rate offerings. Consulting firm Deloitte’s 2025 outlook on the banking sector predicted that the rates banks are paying customers for their deposits will fall from 2.64 percent in 2024 to 1.70 percent by 2026.

Larger, consolidated banks often have more pricing power and brand strength, allowing them to offer lower deposit rates than smaller competitors, the study notes.

Deloitte expects some large banks to reduce deposit rates, relying on their strong balance sheets and established customer bases to remain competitive.

In contrast, smaller and regional banks, which are often acquired in consolidation waves, tend to offer higher rates to attract deposits. As these banks disappear, so do their competitive rates.

Banks are also increasingly focusing on raising their noninterest income, which is the revenue they earn from services and fees, like charges for checking accounts, ATM usage, overdrafts, credit card fees and wealth management services.

Steps to protect your savings

Don’t wait to see if a merger will lower your rate – shop around now. Online banks and credit unions often offer more competitive rates than traditional banks, even as rates fall.

What to do if your bank has already announced a merger

If your bank has already joined in on the M&A party, don’t panic – bank mergers are common and typically take months to finalize. However, they often bring changes to account terms, fees, branch locations and customer service.

  1. Start by reading all communications from your bank carefully. Make sure you understand any changes to your account, especially regarding interest rates, minimum balances or new fees.
  2. If you’re unsure how your accounts or rates might change, call your bank or visit a branch and ask direct questions about what to expect. Don’t be afraid to request a written summary of any changes and keep records of all communications.
  3. Review your current account terms and compare them to what competitors are offering. Be proactive: Shop around for high-yield savings accounts, lower fees or special promotions that other banks may offer to attract new customers.
  4. During the merger process, monitor your accounts closely for errors or unexpected changes. Transitions can sometimes result in technical glitches, missed payments or new fees.
  5. If you notice increased fees, reduced service or a drop in your interest rate, don’t hesitate to switch banks, or to let your bank know that you’re thinking about doing so. Check out Bankrate’s guide to switching banks to learn more.
See also  The Federal Reserve’s Latest Dot Plot, Explained – And What It Says About Interest Rate Cuts

The bottom line

Bank mergers can be bad for customers, especially when it comes to savings rates, features and account terms.

This latest wave of banking consolidation is likely to accelerate, which could put downward pressure on the interest you earn on your deposits.

By staying informed, shopping around and being proactive, you can maximize your money and make sure it’s working as hard as possible. Don’t wait for your bank to make the first move – take control of your financial future today.

You Might Also Like

Average Money Market Account Rates for March 2025

Best Joint Checking Accounts for May 2025

What Is An Add-On CD?

What Is Green Banking: 4 Ways You Can Help Protect The Environment

How Trump Administration’s Deregulation Agenda Could Impact Your Banking

TAGGED:Banking
Share This Article
Facebook Twitter Copy Link
Previous Article 7 Ways To Make More Money When You’re Tired At The End Of The Day 7 Ways To Make More Money When You’re Tired At The End Of The Day
Next Article What I Learned From my First Major Crisis as a CEO What I Learned From my First Major Crisis as a CEO
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

235.3kFollowersLike
69.1kFollowersFollow
11.6kFollowersPin
56.4kFollowersFollow
136kSubscribersSubscribe
4.4kFollowersFollow
- Advertisement -
Ad imageAd image

Latest News

He Went From $471K in Debt to Teaching Others How to Succeed
He Went From $471K in Debt to Teaching Others How to Succeed
Entrepreneur July 1, 2025
How to Harness Prime Day Traffic Without Slashing Prices
How to Harness Prime Day Traffic Without Slashing Prices
Entrepreneur July 1, 2025
Tesla’s Sales Get Another Black Eye — But Will A New Model Y Solve Things?
Tesla’s Sales Get Another Black Eye — But Will A New Model Y Solve Things?
Investing July 1, 2025
NASA, Netflix Team Up to Live Stream Rocket Launches
NASA, Netflix Team Up to Live Stream Rocket Launches
Business July 1, 2025
probizbeacon probizbeacon
probizbeacon probizbeacon

We are dedicated to providing accurate, timely, and in-depth coverage of financial trends, empowering professionals, entrepreneurs, and investors to make informed decisions..

Editor's Picks

Seeking VC Funding? Make Sure You Have the Answers to These 5 Questions
6 Common 529 Plan Fees To Avoid
Why It Matters More Than Ever
Burnout Costs Employers Up to $5 Million Per Year: Study

Follow Us on Socials

We use social media to react to breaking news, update supporters and share information

Facebook Twitter Telegram
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms of Service
Reading: Bank Mergers Are Booming. Here’s Why Savers Should Watch Their Wallets
Share
© 2025 All Rights reserved | Powered by Probizbeacon
Welcome Back!

Sign in to your account

Lost your password?