An average American's savings account loses $2,612 annually.

An average American's savings account loses $2,612 annually.

Your savings account's interest rate is less than 0.05% if you have money in one of the biggest banks in the US, such as Bank of America, Chase, Wells Fargo, or Citibank.

The rates provided by respectable, FDIC-insured banks (such as Ally, Capital One, or Barclays) are more over 5%.

Thus, assuming that the average American saves $41,600, let's say that they put it in a High-Yield Savings Account (HYSA) and get 5% interest. And let's say they hold onto that money in that account for ten years, along with whatever interest they receive. Additionally, their friend maintains the same $41,600 in a savings account with Bank of America, where they are getting 0.01% "interest."

Savings Rate for Banks

Large guys: 0.01%

Online HYSA: 5%

*Rates may differ, but that's essentially it.

The investor who places their money in a HYSA will make $26,162.02 after ten years. Their friend has made $41.62 and feels good about it because they drive by the Bank of America branch every day and imagine their money safe in the vault.

Thus, HYSA buddy uses their interest revenue to purchase a new Toyota Prius. The buddy from BofA gets them lunch at Chick-fil-A while they take a test drive in the Prius.

The interest rate on the HYSA yields more than $7 daily. In one week, it will earn more interest than a typical savings account would in ten.

People, move your money! If your money is languishing in an account with a low interest rate, it is worthless.

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