The Federal Reserve has begun to cut interest rates, which will help many people afford big purchases. However, this also means that interest rates on savings accounts have decreased.
Many Americans report that they are working harder and spending less these days. While they are paying more interest on their purchases, they are seeing little to no return on their investments.
As of October, the average interest rate for savings accounts is just 0.62%. However, some online banks are offering rates as high as 4%, according to Bankrate. These banks include Credit Karma, Capital One, and Lending Club.
Additionally, Federal I-Bonds, which are savings accounts issued by the U.S. Treasury Department, currently offer an interest rate of 3.9%.
With the possibility of more federal rate cuts in the future, savings interest rates could continue to fall. It’s important to shop around for the best interest rates and be cautious when opening new accounts to avoid wasting your money.
https://www.wral.com/story/local-savers-benefit-as-online-banks-offer-competitive-4-interest-amid-federal-rate-cuts/22207623/
