(InvestigateTV) — The Federal Deposit and Insurance Corporation (FDIC) reported in July that the average interest rate on savings accounts was 0.45%.
Longtime bankruptcy attorney Leslie Tayne advised consumers to look for the highest interest rate possible.
She advised looking around and, if necessary, changing banks to find other options where the money can grow over time and not be eaten up by bank fees.
“These days, saving is really about the interest rate,” Tayne said. “The higher the interest rate, the better. There are a lot of ways to save online, and these banks don’t even have local branches where you can bank, they’re just online. So they don’t have branches you can go to. There’s nothing wrong with that, that’s not a warning sign that there’s a challenge or a problem.”
She said consumers should do their research and make sure the online bank they are considering has FDIC insurance.
The FDIC is an independent federal agency that protects depositors from losing their money if an insured bank goes bankrupt.
“As long as your money is FDIC insured and safe, use online banks,” advises Tayne. “They are the most competitive for savings, but they typically don’t move money in and out. And you don’t need the same accessibility as you would at a regular bank.”
Tanye said looking for the best interest rate is the best way to go when shopping for savings accounts so that money earns more.
Copyright 2024 Gray Media Group, Inc. All rights reserved.
