The personal finance strategy “pay yourself first” may be well-known but it is not often followed. In fact, most U.S. adults do not put money in savings before paying bills and making purchases, and those who do have been saving less each year since 2020. The average household savings rate in 2020 was 16.3%. This rate is calculated by dividing the household savings into the household disposable income. In 2022 the rate was 5.1%, and in January of 2023 it dropped to 4.4%. These statistics make it clear that Americans need to get back into the habit of saving money as quickly as possible and choose a method that will allow them to maximize their savings.
CNN researched the best high-yield savings accounts available and none of the big-name banks made the list. According to reporter Juan Ruiz, the big banks didn’t have competitive rates, but they did charge exorbitant fees and have high minimum deposit requirements. The banks that did make CNN’s list, on the other hand, offered varying interest rates, great customer service, no fees, small/ or no minimum deposit requirements, and extra perks like ATM cards with reimbursement of fees, and airline miles. The 7 best accounts that made their list are,
- UFB Preferred Savings
- CIT Bank Savings Connect
- First Foundation Bank Online Savings Account
- Bask Bank Interest Savings Account
- Primis Savings Account
- CIBC Agility Online Savings Account
- LendingClub High-Yield Savings Account
Obviously, bank savings accounts aren’t the only way to maximize savings. Stocks, 401k plans, IRAs, fixed indexed annuities, etc. can work together to balance a portfolio and help clients achieve their financial goals. Call 800-689-3935 to speak with one of our Alloy Investment Management advisors.