Financial Planning Fridays #64: Supercharge Your Savings

The average American family is missing out on thousands of dollars in interest on their savings held inside of traditional banks.

Americans now hold more than $17 trillion at traditional U.S. banks at an average interest rate of 0.46% according to the St. Louis Federal Reserve.

They are missing out on a huge amount of interest by continuing to keep their savings there.

The current interest rate on the Fidelity government money market that so many of our client’s hold in their accounts is just above 5% as of October 31, 2023. This is more than 10 times higher than the national savings rate.

For every $100,000 that Americans hold in their checking and savings account they could be earning an extra $4,500 per year. That could be used for a vacation, a few nice dinners every month, or a million other things- simply by taking one extra step to hold the funds in a quality money market instead of a traditional bank savings account.

Please check your bank statements, calculate the interest you could be earning, and consider using a money market fund to supercharge your savings!

Be on the lookout for our next Financial Planning Fridays episode. Subscribe to our Youtube Channel so you never miss an episode. Or contact us directly; schedule your 15-minute call with us today.