4 ways to earn more interest on your savings
Summary
This article explains four ways to earn higher interest on your savings in today’s economy. It highlights options like high-yield savings accounts, certificates of deposit, online banks, and money market accounts as safer ways to grow your money more than regular savings accounts.Key Facts
- The typical savings account currently pays about 0.42% interest yearly.
- High-yield savings accounts now offer about 4.5% interest, the highest since 2008.
- The Federal Reserve has raised short-term interest rates 11 times since March 2022, helping boost savings rates.
- Certificates of deposit (CDs) pay higher interest if you agree to leave your money untouched for a set time.
- Online banks often pay 4 to 5 times higher interest rates than traditional brick-and-mortar banks because they have lower costs.
- Money market accounts usually offer higher interest than regular savings and allow check writing.
- These higher rates may stay the same or increase until the Federal Reserve decides to lower rates.
- Locking in a higher interest rate through CDs can protect your earnings if rates drop later.
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