Are Bank Savings Account Interest Rates Ever Worthwhile??

Many people find themselves wondering if bank savings account interest rates are ever worthwhile. The truth is, yes, they can be worthwhile if you can secure a high yield interest rate on a fixed basis. Not all savings account interest rates are going to be worthwhile, however, because interest rates fluctuate.

Online Savings Account Interest Rates

Are you keeping your savings in a bank account for a house down payment, an emergency fund, a house remodel or even a new car? Sometimes when you are specifically saving to achieve a goal, you get so focused on achieving that particular goal that you do not put enough thought into where you should be investing your money in order to get there. Do not leave your savings in your checking account, for example, nor should you open up any old savings account assuming automatically that the interest rate that you are offered will be competitive.

Shopping Around

While it may be possible for your bank to pay a competitive interest rate for savings, it is not likely for this to be so. There are banks out there, however, that are offering 2% savings account interest rates right now. If you are not obtaining that much interest in your current savings situation, then it is time for you to do some comparison shopping.

If you do not have much money, you may find yourself wondering if it is really going to be worthwhile to shop around in search of a higher interest rate. Less money will mean less interest, but that does not mean that you should not be looking for the highest possible return on your investment.

For example, if you have collected an emergency fund totaling $2,500, then the amount of your interest rate is really going to affect how much interest you earn in the year. The total interest earned in a year for a 2.0% interest rate on this amount of money can be as much as $553 assuming the amount of money in the account does not fluctuate. If your bank account is only offering an interest rate of 0.5% however, that amount is significantly reduced to only $128 per year. This is why shopping around for a better interest rate is so important.

Are Bank Savings Account Interest Rates Ever Worthwhile?
Yes, absolutely, but only if you are willing to shop around to find the best interest rate for your needs. If you settle for a lower interest rate, you will not benefit nearly as much in the end result

Are Bank Savings Account Interest Rates Ever Worthwhile??

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