How to get more out of a savings account

by Editors at Fair
May 27, 2022
How to get more out of a savings account

Google the words “save money” and you will find thousands of suggestions and ways to do it: coupons, sales, budgeting software, and more.

The importance of saving money cannot be understated. Saving money allows you to be protected in the event of a financial emergency, pay for big purchases like a vacation, car, or home, and more. Saving money also can reduce financial stress.

Logically thinking, one of the easiest ways to save money is to spend less and put away money regularly into a savings account. Yet, according to a recent GOBankingRates survey, many Americans are not doing this, as the survey notes that 40% of Americans have less than $300 in savings. This is a drop compared to the pre-pandemic figure of $400 in savings used by the Federal Reserve as a gauge for measuring households’ financial well-being, according to the survey.

The COVID-19 pandemic has not helped: according to the survey, “because of the pandemic, 55% of Americans had to dip into their savings, with the 25 to 34 age group being the most affected, at 64.3%. In addition, 12.6% of respondents said they had no savings to begin with.”

Going deeper, the survey indicates the number of Americans living paycheck-to-paycheck has increased as well, at 37.5% compared to 33% in December 2019. “Other obstacles keeping Americans from saving money include being unemployed (25.8% compared to 22.8% in 2019); the cost of living (24.45% compared to 19.7% in 2019); and having too much debt (17% compared to 16% in 2019.)”

Clearly, it’s not always easy for everyone to save money.

Adding to the situation is that inflation is at a 40-year high and the average credit card interest rate is now 16.45%. And the average interest rate paid by typical banks in the US has barely moved, averaging just 0.06%, so even if you put your money into a traditional savings account, it’s not going to grow very much.

The good news is that you can earn significant returns while saving money with a Fair Wealth Building Account. The account is a savings alternative that allows you to generate high yield returns on your balance - 4% annually - without any fees, minimums or hassle.

For added peace of mind, Wealth Building Accounts are SIPC insured, and are also protected against loss of capital by Fair Invest (see our WBA terms and conditions for details).  Soon you could have an account with a significant amount of savings to help you achieve your financial goals - and reduce that financial stress factor.

Get started with a Fair Wealth Building Account today.