Since the Pandemic, many people have been working to make themselves financially stable and relying on various methods to grow their wealth and find a way to make a passive income. This includes people investing their money into stocks, trust funds, and more but one of the safest and most reliable sources to increase your money is saving accounts.
Yurii Hlei/ However, you can always check in with your current bank to ask about their savings accounts and APYs.
The average saving account in the United States of America comes with an interest rate of 0.35% APY, but that does not mean that you should go with a savings account that comes with a 0.35% interest rate. In fact, you can compare and discover a high-yield savings account that can aid you in your quest to become financially secure. Interested to know more? Keep on reading.
Calculating The Average National Savings Interest Rate
If you are worried about calculating the average national savings interest rates, then look no further because this is where the FDIC comes into play. The Federal Deposit Insurance Corporation is a government agency that provides insurance for the money deposited in banks. Now you might be wondering why the money in the bank requires insurance, well, this is in case the bank seizes operations or shuts down. At least, your deposits will be insured.
Matthias Zommer/ Aren’t these high APYs exciting?
Back to the basics, the FDIC basically tracks the trends in the banking industry, including the average interest rates paid on saving accounts throughout the state, and it also updates it on a monthly basis. The FDIC considers rates that are paid by credit unions in its data, not only banks.
The High Yield Savings Account Interest Rates
These online banks provide high-yield savings accounts that help you in growing your money at a quick pace. All you have to do is simply deposit your amount into the bank and sit back. Banks Capital One 360 provides 3.40% as of February 2023, Marcus by Goldman Sachs has an interest rate of 3.75% since February 2023, and Banks like Synchrony, CIT Bank, and Bask Bank, all of them provide an interest rate of over 4%. Some banks like UFB Direct have been offering an interest rate of 5.02% since March 2023.
Karolina Grabowska/Pexels | Some of these savings accounts might look good on paper, but the terms and conditions might not be up to the mark.
This is because a high-yield savings account earns far more than a traditional savings account which is why they provide an annual percentage yield of over 3%. These annual yields are in the same range as some CDs. But given the flexibility of withdrawing your money whenever you want, these high-yield savings accounts are definitely in the lead.
What’s The Final Verdict?
These high-interest rates can definitely be intriguing, but there is a lot more to these savings accounts than just a high APY. This is where your research has to come in; you need to decide on what terms you are willing to put your money into a certain savings account and whether it will benefit you in the long run.
In the end, it is all about what works for you now and what is going to work for you in the long run.
