Well they've gone from using their savings accounts in the calculations to just putting everything into the stock market, usually the S&P 500.
Its a win-win - they get to charge higher transaction fees and management fees if its their own product, and the recent bull market makes the customer think they're going to get 7% returns forever. Just as long as they don't need to withdraw their money during a recession.
Its a win-win - they get to charge higher transaction fees and management fees if its their own product, and the recent bull market makes the customer think they're going to get 7% returns forever. Just as long as they don't need to withdraw their money during a recession.