Today’s Savers Are Missing an Easy Opportunity To Earn More on Cash

As interest rates climb, banks are offering much better returns on savings than they have in many years. Unfortunately, relatively few people seem to be taking advantage of this opportunity to pile up more cash.

Among middle-income Americans, 66% have not moved their deposits to savings accounts that yield a better return, according to a new Morning Consult study commissioned by Santander US, which operates a bank with branches in Miami and the Northeastern U.S.

Such procrastination is occurring at a time when more than 7 in 10 people told Santander they are unable to save as much as they would like because of inflation.

Santander points out that failing to take advantage of opportunities to earn more on savings means many Americans are “missing out on an opportunity to offset these inflationary pressures.”

It is possible that sheer ignorance about trends surrounding savings accounts is preventing savers from improving their situation. Just over 1 in 10 survey respondents — 11% — were able to correctly answer a series of four questions about savings accounts.

Those who did answer all four questions correctly were more likely to take advantage of higher rates than savers who answered all four questions incorrectly, Santander says.

Despite both worries about inflation and the widespread failure to take advantage of better savings rates, Americans remain optimistic about their financial future. More than three-quarters — 77% — expect to achieve financial prosperity within a decade.

For the survey, Morning Consult talked to 2,213 American bank or financial services customers between the ages of 18 and 76. Participants had incomes ranging from $47,000 to $142,000.

The best way to get a better return is to compare rates from several banks and pick an option that both suits your needs and offers the highest rates.

Stop by the Money Talks News Solutions Center and search for a savings account with a great rate.