As JPMorgan Pays Literally Nothing On Deposits, Elon Musk Rues People's Poor Money Management: 'So Bizarre'

Tesla CEO Elon Musk on Tuesday chimed in on the prevailing bank rates and also offered his take on what could be the most viable option for depositors.

What Happened: Conservative financial blog site Zerohedge tweeted that JPMorgan Chase & Co. JPM may have had to shell out $90 billion per year if it paid 4% interest rates on its $2.3 trillion in deposits. "Instead it pays nothing to fund its assets thanks to 0.01% deposit rates," it said.

Zerohedge also shared a screenshot of JPMorgan's consumer deposit rates, effective April 21^st.

Responding to the tweet, Musk said, "so bizarre that people and companies don't use money management (Treasury bill) checking accounts and earn 4%."

Why It's Important: The Fed's aggressive interest rates that began in March 2022 have left the Fed funds target rate at 4.75%-5%. The yield curve inversion amid the increase in risk aversion has led to a spike in the two-year Treasury note yield, which went past 5% at one point in March. It has come off these highs and is just under 4% currently.

The clout of big banks, especially those which are safeguarded as ‘too big to fail,' are only going to increase further in the aftermath of the banking crisis. Depositors have begun to perceive regional banks as risky, resulting in the flight of deposits to the big banks.