Expert advice to get the best savings account rate
Forbes: 28% of Americans have less than $1,000 in savings
(InvestigateTV) — The Federal Deposit and Insurance Corporation (FDIC) reported in July that the average interest rate for savings accounts was 0.45%.
Longtime bankruptcy attorney Leslie Tayne advised consumers to find the highest interest rate possible.
She said to shop around and to change banks if necessary to find other opportunities where money can grow over time and not be depleted through bank fees.
“These days when it comes to savings, it’s really about the rate,” Tayne said. “The higher the rate, the better. There’s lots of opportunities for online savings, and those banks don’t even have local places that you could bank, they’re just simply online. So, they don’t have locations that you can go into. There’s nothing wrong with that, that’s not a red flag that there’s a challenge or a problem.”
She said consumers need to do their research and make sure the online bank they are considering is FDIC insured.
The FDIC is an independent federal agency that protects depositors from losing their money if an insured bank fails.
“As long as it’s FDIC insured and your money is safe, use the online banks,” Tayne suggested. “If they’re the most competitive with savings, are generally not moving money in and out. And you don’t need the same accessibility that you might with a day-to-day bank.”
Tanye said finding the best rate is the best way to shop for savings accounts, so money earns more.
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