Savers in 2023 accrued interest of $315.4 billion in their deposit accounts.
As the Federal Reserve opted against cutting interest rates and kept them consistent at 5.25 percent to 5.5 percent, Americans’ saving accounts are growing at unprecedented levels.
The Fed has levied one of the highest interest rates in more than a decade as inflation remains stubborn. But one side effect of the rates is that Americans’ bank account money is soaring in savings interest.
Savers last year made $315.4 billion in interest in their deposit accounts, which was a whopping four times the $78.7 billion Americans made in 2022, LendingTree found.
« It’s the best time to be a saver in over 20 years, » Alex Beene, financial literacy instructor at the University of Tennessee at Martin, told Newsweek. « If you haven’t been taking advantage of these higher interest rates for certain accounts, do so immediately. Every month you fail to do so could amount to many extra dollars not coming into your account. »
The savings gains happened as the average interest rate on regular bank savings accounts is 0.5 percent. In some cases, at larger banks, it’s as low as 0.
