Consumers could handle inflation better when it burnt hot the last time. People put their money in banks, watched it grow, and eased much of their pain. However, this time, it is not possible as lenders can get more profits. The lending rates of banks and the deposit rates to account holders have not been so wide in the past 50 years. The average rate banks pay depositors in their savings accounts is only 0.06%. Several banks are yet to pay savers more despite the rates hike by the Federal Reserve. The banks are telling their shareholders that the deposit betas will remain advantageous for the bank ahead. The busiest jargon in the financial services industry is Betas. This phrase was used more by Bank of America Corps. Analysts in the last two months than in two years before. The bank executive said their interest income might climb by $1 billion in the third quarter compared to the second quarter as the interest paid to depositors remains stagnant. CEO Brian Moynihan said the consumer banking segment was good, and loan growth was the fastest in a quarter in the last three years. Big Gap They are various reasons why depositors are getting low interest. Firstly, the Fed took time to hike interest after long-time lows. The inflation had settled firmly, and it took time for deposit rates to increase. The consumer price index jumped in June by 9.1%, while banks, including Bank of America, JPMorgan Chase, and Well Fargo, offered a deposit rate of only 0.01 %. The deposit rates are expected to increase slowly. Though fed rate hikes on borrowers occur, there is no competitive pressure on banks to pay more interest. The banks are also flush with funds as they surge in deposits during the pandemic lockdown and stimulus programs. The big clients of the banks are also not doing much business with them apart from parking their funds. Erika Najarian, a UBS Group AG banking analyst, said that banks have plenty of room on the liabilities side. Many banks are facing slipping deposits though there are not enough consumers who can switch lenders to put enough pressure. Many institutions are burnishing rates to attract inflows, such as American Express Co. and Synchrony Financial, and they both are offering at least 1.5%. No Relief One reason for inertia is people of a certain age remember those days when interest rates were higher on deposits, and this blunted the inflation impact. Another is that bank accounts are not easily portable these days. People these days have their paychecks deposited in banks directly. They also link their bill payments automatically through banks, and switching to a new bank is a hassle. This time deposit and lending rates are coming off from ultra-low levels, according to Chief analyst of Bankrate.com, Greg McBride. Banks will see the benefits from higher lending rates before passing the benefit to the depositors. Further Reading \t How Video Conferencing Platform Zoom Zoomed to the Top During Pandemic? \t What Should You Do to Make Your Domestic Business a Part of International Businesses? \t How to Use T-Shirt Advertising to Promote Your Business?