High-Yield Savings Rates Have Tanked, but These Overlooked Accounts Still Pay 2% or More
- 9 Hidden Costs of Owning a Pet
- Climate Change Could Quickly Turn Your Old Roof Into a Home Insurance Headache
- Home Insurance Rates Are Rising Due to Climate Change: Here's How to Lower Your Costs
- 'There Are No Safe States': 2021's Terrible Weather Could Hike Home Insurance Costs
- Life Insurance Costs Could Soon Increase for People Who Have Battled COVID-19
Money is not a client of any investment adviser featured on this page. The information provided on this page is for educational purposes only and is not intended as investment advice. Money does not offer advisory services.
It’s tough for savers out there. But, if you are willing to jump through a few hoops you can still earn a reasonable interest rate on your rainy-day fund.
The Federal Reserve has pledged to support the economy through the Covid-19 pandemic by driving down — and holding down — short-term rates to near zero for the foreseeable future. While this is a boon for real estate buyers and homeowners seeking to refinance their mortgages, it’s another equation entirely for anyone saving for the future: Interest rates on bank accounts are taking another beating — much to the chagrin of people who jumped through hoops in pursuit of a 1% or 2% APY return that has now vanished.
But there is one more alternative for these frustrated savers: Rewards checking accounts that yield returns of 1%, 2% and sometimes more on your money, and which can be a compelling option for people who at least want their cash reserves to keep pace with inflation.
“High yielding checking accounts have become popular with Covid-19,” says Michael Moebs, CEO and economist at financial services research firm Moebs Services. The personal savings rate shot up when the pandemic struck, and remains historically high at 19%, according to the most recent data from the St. Louis Fed.
