Low Interest Rates Continue to Plague Middle-Income Americans' Savings
A survey conducted by Santander reveals that despite higher interest rates, most middle-income Americans are earning less than 3% on their primary savings accounts. The survey found that 22% of consumers are unaware of their savings earnings, while 37% either have no savings or not enough to make it worthwhile. However, 36% of respondents have at least $10,000 in savings. Experts suggest considering certificates of deposit (CDs) to secure higher rates for a set period of time, as they currently offer nearly 5.75% for a one-year term. The right savings option depends on individual goals and timeline, as CDs may have an interest penalty if funds are needed within a year.
