Today we’re taking an interest in interest rates. They seem to have risen everywhere except your savings account. We’re discussing the reasons why and what you can do about it.
We’re also talking about:
- Why digital private banking is the future of finance
- What your grocery list looks like in 2022
- A new NFL tradition
Interest rates have risen nearly everywhere as the Federal Reserve continues its fight against inflation.
- Mortgage rates have doubled from January 2022 to over 7%.
- Interest rates on new car loans are 5.7%, up from 4.3% a year ago.
- Interest rates on credit cards have increased, now averaging 21.4%.
However, there is one facet of the economy where rising interest rates have not kept pace: savings accounts. In April 2020, interest rates for savings accounts were 0.10%. Today, they average about 0.16%.
One of the silver linings of a high interest rate environment is supposed to be savings accounts.
Currently, the largest banks can keep savings accounts returns low because they have a surplus of deposits to cover their lending businesses. But there are products and platforms out there that offer different rates or returns – and it can pay to shop around.
With all this negativity surrounding the economy, there is a financial and psychological case to consider switching. Wherever you choose to put your money, you want to feel good about it.
Not everyone wants to switch. Some perceive switching as a hassle. However, switching accounts in today’s digitized world is quicker, easier, and safer than ever.
We’ve seen risk-averse clients who are not interested in investing in the market at this time consider high-yield savings accounts, CDs, and I-bonds.
While M1 does not yet offer savings accounts, we’ve also seen clients access 2.50% APY1 in their checking accounts with M1 Plus >>
Why digital private banking is the future of finance
How to think about your finances in the same way an ultra-wealthy person thinks about theirs.
How automation could help you build long-term wealth
Learn how to create recurring investment schedules through M1 products such as Direct Deposit or Smart Transfers.
This week, take a moment to check out:
- Grocery bills: Your grocery list ranked by inflation.
- Black Friday 2023: Amazon and the NFL announced Prime Video will stream a first ever Black Friday game after Thanksgiving Day in 2023.
- Sports investing: Entrepreneur, Gary Vaynerchuk, and athletes, Tom Brady and LeBron James, have joined the list of investors into America’s fastest growing sport.
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1No minimum balance to open account or to obtain APY (annual percentage yield). APY valid from account opening. Fees may reduce earnings. Rates may vary.