After more than a decade of seriously skimpy returns, today’s savers can finally get a much better interest rate from their bank account, thanks to numerous Federal Reserve rate hikes over the past year or so.
Unfortunately, relatively few people seem to be taking advantage of that fact.
Among middle-income Americans, 68% have not moved their deposits to savings accounts that yield a better return, according to a new Morning Consult study commissioned by Santander.
The end result? American savers are “possibly leaving billions on the table in earned interest,” according to Santander.
The situation grows even more frustrating when you realize that more than 9 in 10 savers — 93% — say competitive rates are a key factor when they select a banking provider.
Many of the banks that pay the highest rates are online banks. Over the years, Americans have become extremely comfortable doing their banking over the internet.
The survey found that 97% of middle-income customers says digital offerings are an extremely important perk when banking. Three-quarters — 75% — said such offerings are very important.
So, if you are getting just 1% or 2% on your savings, know that you can do much better. In fact, it should be easy to exceed 4%.
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 Money Talks News’ Solutions Center and search for a savings account with a great rate.