When it comes to money matters, most Americans worry about unexpected expenses, making ends meet and health-care costs, according to a study by LendingTree, which had polled more than 1,000 adults about their resolutions for 2018.
One of the best ways to deal with unexpected expenses is to make sure you have enough money set aside. That’s where rising interest rates can help.
As the Federal Reserve raised its benchmark rate, yields on savings accounts have increased, as well. While the average interest rate on a savings account is still only 0.2 percent, some top-yielding savings accounts are now as high as 2.25 percent and you can earn even more with CDs, or certificates of deposit.
With a savings rate, or annual percentage yield, of 0.2 percent, a $10,000 deposit earns just $20 after one year. At 2.25 percent, that same deposit would earn $225.
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