Nearly one third of all banking customers maintain less than $1000 in their account and a similar number have accounts at more than one financial provider.
Shifting economic headwinds are prompting investors to rethink their asset allocation, including fixed-income instruments. With inflation nipping at their heels, Americans are keen to get their idle cash working for them and producing increased returns.
According to a March study by J.D. Power, the percentage of U.S. customers with $10,000 or more in primary bank deposit balances declined 16% over the past year.
Last year was one of the worst ever for bonds in decades. Indexes that track aggregate bond funds, such as Barclay’s U.S. Aggregate Bond Index, showed a decline of around 13% over 2022, making 2022 the worst year since at least 1976.
“The Federal Reserve raised rates more than they have in 40 years. That caused massive losses for bondholders,” Robert Gilliland, managing director at Concenture Wealth Management, told CNBC earlier this year.