Many big banks offer extremely low interest rates on savings accounts, leaving savers with trillions of dollars in accounts that are eroded by inflation.
Customers can find higher rates by moving funds into money market accounts or certificates of deposit, or by looking to competitors, especially online banks, which offer rates around 5%.
“I really implore people to look outside their relationship with their current megabank,” Mountain Wealth Planning founder Amy Hamasaki said.
“These banks are making so much money off of these individuals having so much money earning nothing.”
However, many customers are slow to switch banks due to complacency and lack of awareness.
Retirees with significant savings in low-interest accounts are losing out on thousands of dollars annually.
Despite this, experts believe that consumer patterns are unlikely to change, even with increasing interest rates.
Financial advisors are encouraging clients to lock in higher rates by investing in instruments that guarantee higher yields before the Federal Reserve cuts rates.
Read Also:
Nikki Haley Admits Why She Feels ‘Stupid’ On Campaign Trail
Hot Mic Slip Exposes MSNBC Host’s True Views On Biden
