Apr 25, 2023 - Economy

Rates are high for savers, but most Americans aren't taking advantage

Data: Bankrate; Chart: Axios Visuals

Americans with a bit of cash to spare could earn more than 4% interest on a plain vanilla high-yield savings account right now — but few are taking advantage of the opportunity.

Driving the news: Only 7% of Americans with short-term savings are earning that much, per a Bankrate survey last month.

  • Only around 1 in 5 said they’re earning a yield that’s 3% or higher.
  • The average rate consumers are earning on their savings is a paltry 0.24%, Greg McBride, chief analyst at Bankrate, told Axios.

The big picture: This is good news for banks that make more money when customer cash languishes at low-interest rates.

  • It's not great for savers, especially at a time when inflation is at 5% — and money is losing value if it's just sitting there earning very little.

Separately, 33% of those surveyed had no savings at all — a whole other problem.

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