Don’t settle for low interest rates

  • Not all ‘high-yield’ savings accounts have kept up with rising interest rates
  • Time to make a change and find a better savings account
  • National average annual percentage yield for savings accounts is only 0.57%
  • Don’t assume your bank has your best interests in mind
  • Opportunity to earn north of 4.00% on savings with little effort
  • Consider money-market accounts, CDs, I bonds, and Treasury securities for higher rates
  • Have a long-term strategy and plan for market downturns
  • Set aside cash in an emergency fund
  • Avoid tapping retirement savings unless absolutely necessary
  • If you’ve won the game, take less risk
  • Find a different parking space if getting less than 4% on your savings

Not all ‘high-yield’ savings accounts have kept up with rising interest rates, so it may be time to make a change. The national average annual percentage yield for savings accounts is only 0.57%, despite the federal funds target rate being between 5.25% and 5.50%. Don’t assume your bank has your best interests in mind. There is an opportunity to earn north of 4.00% on your savings with little effort. Consider money-market accounts, CDs, I bonds, and Treasury securities for higher rates. It’s important to have a long-term strategy and plan for market downturns. Set aside cash in an emergency fund to cover three to six months of expenses. Avoid tapping retirement savings unless absolutely necessary. If you’ve already reached financial independence, take less risk. And if you’re getting less than 4% on your savings, it’s time to find a different parking space.

Public Companies: Bankrate (null)
Private Companies: undefined, undefined, undefined
Key People: Kelley Long (Certified Financial Planner and Certified Public Accountant), Jeff Rose (Certified Financial Planner and Founder of GoodFinancialCents.com), Mary Ballin (Certified Financial Planner and Certified Divorce Financial Analyst at Perigon Wealth Management), Allan Roth (Founder of Wealth Logic)

Factuality Level: 7
Justification: The article provides information about the current interest rates for savings accounts and offers suggestions for finding higher-yield options. It also includes advice from financial planners on long-term investment strategies and the importance of having an emergency fund. The information provided is relevant and accurate, and there is no obvious bias or misleading information. However, the article does contain some unnecessary background information and tangential details that could be considered digressions.

Noise Level: 6
Justification: The article provides some useful information about the low interest rates on savings accounts and suggests alternative options for earning higher returns. However, it contains some filler content, such as the mention of the author’s personal accounts, and does not provide a thorough analysis of long-term trends or antifragility.

Financial Relevance: Yes
Financial Markets Impacted: The article discusses the low interest rates on savings accounts and suggests alternative options for earning higher returns. This information may impact financial markets and companies in the banking and investment sectors.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article primarily focuses on financial topics, specifically the low interest rates on savings accounts and alternative investment options. It does not mention any extreme events or their impacts.

Reported publicly: www.marketwatch.com