Why You Shouldn’t Let High Interest Rates Seduce You

While increased interest rates are improving the returns on high-yield savings accounts, that may not be an effective place to park your money for the long term.

A man smiles as he looks at cash he's fanned out in his hands.
(Image credit: Getty Images)

With today’s interest rates, money left in savings accounts is earning more than it has in years past.

Some banks are offering more than 5% annual percentage yield on savings accounts. A couple of years ago, those same high-yield savings accounts were offering just more than 1% APY. Therefore, seeing your interest credit on your account increase so drastically can be enticing.

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Kelly LaVigne, J.D.
Vice President, Advanced Markets, Allianz Life

Kelly LaVigne is vice president of advanced markets for Allianz Life Insurance Co., where he is responsible for the development of programs that assist financial professionals in serving clients with retirement, estate planning and tax-related strategies.