Deposit costs across the banking industry will increase, but by how much is debatable.
Banks of varying sizes and in different markets have included a variety of deposit betas—or how much of the changes in market rates they will have to pass onto customers—in their assumptions.
Many investors expect higher short-term rates will lead to higher net interest margins. But ultimately the actual deposit beta that a bank incurs will dictate just how much an institution benefits from increases in short-term rates.