Why Is It That Your Savings Account Could Be Costing You Money?

When it comes to savings accounts, you may be losing out - big time.

Transcript

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 less than 2% interest.

00:11And nearly one in four said their savings account doesn't earn interest at all.

00:16According to the Federal Deposit Insurance Corporation, or FDIC,

00:20the national average interest rate for a savings account is only 0.09%.

00:25You might as well be stashing your money under a mattress.

00:27Putting $10,000 in an account that earns 0.09% only gets you $45 over five years.

00:35But putting $10,000 in one that earns 2% gets you more than $1,000 over five years.

00:40So 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 in 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 your money's safe.