Startup Public joins high-yield brigade

Public, the investing startup, is getting in on the high-yield savings game, Axios' Javier E. David writes.

Driving the news: Public announced yesterday that it would offer a zero-fee, no minimum or maximum balance cash account to anyone who signs up, with a generous 5.1% annual percentage yield.

The details: Public is offering account protection for up to $5 million, multiples higher than the standard FDIC bulwark (which became a major focus after the meltdown of Silicon Valley Bank in March).

Why it matters: SVB's sudden collapse — combined with the Federal Reserve's aggressive rate hiking campaign — touched off a veritable gold rush for retail consumers seeking shelter (and returns) in yield-bearing alternative instruments.

Yes, but: With the Fed's tightening campaign coming to an end, the central bank is widely expected to start cutting rates in 2024.

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