Running the Numbers: How Much Does Your Savings Account Really Earn?
Most people place money into a savings account with the desire to hold onto it for a substantial period of time — save it for a rainy day, retirement, in case of an emergency, or even for a vacation. The Federal Deposit Insurance Cooperation (FDIC) reports that as of 2013′s year-end, Americans had 8.54 trillion dollars deposited into time and savings accounts, with the average savings account balance among Americans at $3,800 (according to one estimate.)
The FDIC reports the national savings account rate at only .06 percent. A high-yield savings account may earn you around a .7 percent annual percentage yield (APY), or a slightly higher or lower rate, depending on the financial institution and terms of the account. With rates this low, you have to wonder exactly how much, monetarily, your savings account is really worth.