How much interest are you losing by keeping $10,000 in a traditional savings account?
Summary
Keeping $10,000 in a traditional savings account pays much less interest than other types of accounts. High-yield savings accounts, certificates of deposit (CDs), and money market accounts offer much higher rates, helping savers earn more money over time.Key Facts
- The average interest rate for traditional savings accounts is about 0.38%.
- A $10,000 amount in a traditional savings account will earn about $38 in one year.
- A $10,000 certificate of deposit (CD) at 4.17% interest would earn $417 in one year.
- A high-yield savings account at 4.10% would earn $410 on $10,000 in one year.
- A money market account at 3.80% would earn $380 on $10,000 in one year.
- By keeping money in a traditional savings account, savers could lose between $342 and $379 in potential interest earnings per year.
- Interest rates on other savings options might change, but the difference in earnings is already large.
- Savers can easily compare accounts online to find better rates and increase their savings growth.
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