Over the past year, plain savings accounts have outperformed both the S&P 500 yield and the 10-year US Treasury Bond yield.* This basically means your money could grow faster in a shorter amount of time (let’s say a year), versus a 10-year duration!
While the average interest rate for savings accounts in the U.S. is still fairly low at 0.09%*, there are quite a few high yield savings accounts that offer more than 20x higher than the national average. These are accounts with at least 2.22% APY!
This is positive news for those looking to earn money through saving rather than investing, although a diverse mix is strongly recommended. For instance, I currently have an online savings account that yields a 2.25% APY, a Roth IRA, a 401(K), and both short-term and long-term investments that have a mix of stocks and bonds to prep for retirement.
So if you want to grow your money smarter as well, the first step is to put your savings in a high yield savings account.
You can check out what your earnings could be below and if you enter your zip code, you’ll see the highest APY saving accounts in the nation right now that you can easily switch to.
Move the slider to see your 2.25% APY earnings!
*Savings account performance growth source: The Hustle and Axios
*0.09% interest rate: FDIC.gov