When it comes to savings accounts, you may be losing out - big time.
Category
📚
LearningTranscript
00:00When it comes to savings accounts, you may be losing out big time.
00:04A recent bank rate survey found nearly 70% of Americans have savings accounts paying
00:09less than 2% interest.
00:11And nearly 1 in 4 said their savings account doesn't earn interest at all.
00:16According to the Federal Deposit Insurance Corporation, or FDIC, the national average
00:21interest rate for a savings account is only .09%.
00:25You might as well be stashing your money under a mattress.
00:28Putting $10,000 in an account that earns .09% only gets you $45 over 5 years.
00:35But putting $10,000 in one that earns 2% gets you more than $1,000 over 5 years.
00:41So how do you find a high-yield savings account that's right for you?
00:44Look for one that offers at least a 2% interest rate so the switch is worth it.
00:49Some accounts require a minimum initial deposit, or you have to put in a certain dollar amount
00:54in each month.
00:55Always check to see if there are any management fees so you're not spending to save.
01:00And make sure it's insured by the FDIC or National Credit Union Association so you know
01:05your money's safe.