Interest Rates On Savings Accounts Are Pathetic. Here's Why You Should Still Have One
- 4 years ago
In response to the COVID-19 pandemic, the US Federal Reserve has lowered the federal funds rate.
According to Business Insider, that means high-yield savings account rates are going down, too.
In fact, nearly all high-yield savings accounts are decreasing their interest rates in 2020.
Consumers may wonder, why even bother with putting money into a savings account?
Even with lower rates, high-yield savings accounts earn more than checking and regular savings accounts.
That makes them ideal places to store money for short-term savings goals, like buying a car or a mortgage downpayment.
According to Business Insider, that means high-yield savings account rates are going down, too.
In fact, nearly all high-yield savings accounts are decreasing their interest rates in 2020.
Consumers may wonder, why even bother with putting money into a savings account?
Even with lower rates, high-yield savings accounts earn more than checking and regular savings accounts.
That makes them ideal places to store money for short-term savings goals, like buying a car or a mortgage downpayment.