Disgusted With Your Savings Interest Rate? Time to Switch

If your money is parked in a low-rate savings account, you could be earning hundreds or even thousands more by switching to one of these three options instead.

Small piggy banks sit on stacks of coins that get subsequently higher.
(Image credit: Getty Images)

Interest rates are pretty high these days. That’s great for retirees who need their savings to generate income — but don’t assume that just because rates are high you’re automatically getting them. The going rate at many banks and brokerage houses is abysmally low.

The national average interest rate paid on savings is 0.46% (as of April 15, 2024), according to the Federal Deposit Insurance Corporation (FDIC). Considering the Effective Federal Funds Rate is 5.33% (as of May 2024), if you have money in a savings account, there’s a good chance you could be earning a lot more interest somewhere else.

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Michael Joseph, CFA
Portfolio Manager and Deputy Chief Investment Officer, SAM

Michael is a Portfolio Manager and Deputy Chief Investment Officer at SAM, a Registered Investment Advisor with the United States Securities and Exchange Commission. File number: 801-107061. He sources investment opportunities and conducts ongoing due diligence across SAM’s portfolios. Michael co-manages SAM’s Income and Tactical Select strategies. Prior to joining SAM, Michael worked with high-net-worth private clients for the largest independent wealth management firm in the United States. He was also a senior analyst for one of the largest investment-grade bond managers in America. Michael joined SAM in 2017.