Can Having a Savings Account Actually Cost You Money?

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

Transcript

00:00 When it comes to savings accounts, you may be losing out big time.

00:04 A recent bank rate survey found nearly 70% of Americans have savings accounts paying

00:09 less than 2% interest.

00:11 And nearly 1 in 4 said their savings account doesn't earn interest at all.

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

00:21 interest rate for a savings account is only .09%.

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

00:28 Putting $10,000 in an account that earns .09% only gets you $45 over 5 years.

00:35 But putting $10,000 in one that earns 2% gets you more than $1,000 over 5 years.

00:41 So how do you find a high-yield savings account that's right for you?

00:44 Look for one that offers at least a 2% interest rate so the switch is worth it.

00:49 Some accounts require a minimum initial deposit, or you have to put in a certain dollar amount

00:54 in each month.

00:55 Always check to see if there are any management fees so you're not spending to save.

01:00 And make sure it's insured by the FDIC or National Credit Union Association so you know

01:05 your money's safe.

01:06 (upbeat music)