The Most Consumer-Friendly Banks

The Credit Power Index

When the Credit Power Index was released Monday, it confirmed what many Americans already knew: Consumers are getting squeezed by their banks. The metric tracks the gap between the interest rate that banks demand on loans and the interest they offer on deposits, with the index increasing as consumers get squeezed even harder by bank rates. (For more information on how the index is calculated, check out our explanation of the methodology.) The national index stands at 23.74, up significantly from 18.49 in January 2007. That tells us that the interest rate climate has grown significantly less favorable for consumers, in large part because deposit rates have fallen much more sharply than loan rates. But not every bank is putting the screws to its customers, with some continuing to offer reasonable rates on both deposits and loans. We sifted through the data from RateWatch to find which banks were most favorable to their customers, as measured by the Credit Power Index. Photo Credit: mangpages