NEW YORK–Nearly 70% of Americans are feeling frustrated that the money they’re saving isn’t growing due to low interest rates, according to a new MagnifyMoney survey of more than 1,000 consumers.
Among the findings in the survey:
- A lack of savings growth is a pain point for consumers. Sixty-eight percent of consumers, led by younger generations, say they feel frustrated that the money they’re saving isn’t growing.
- Some consumers don’t pay attention to how much interest their savings earn, and it could be costing them. More than a third (34%) admit they have no idea how much interest they’re earning with their primary savings account.
- Even those who do know their primary savings account’s APY are likely missing out on higher returns. Only 13% of consumers say they’re earning an APY of 0.50% or higher, even though the best online savings accounts yield an average APY of 0.55%.
- Shopping around for the financial institution with the best APYs can pay off. Nearly half (46%) of Americans have moved their savings to a different bank or account type to earn more interest. Gen Zers (66%) are most savvy when it comes to switching banks for better rates, followed by Millennials (56%).
- A third of Americans went low when asked about the highest amount they’ve ever saved (minus any investments). Thirty-three percent say they’ve never had $5,000 saved up.
The full survey findings can be found here.