For the past number of years, your savings account probably wasn’t growing much because interest rates were near 0%. Putting your money in a savings account was seen as a non-growth method. That’s not what were seeing these days. To fight inflation, the Fed has been raising interest rates which is also pushing savings rates higher. Savings rates are increasing.
As of writing this post, I’ve seen savings rates over 4% now as well as 5%. If you’re looking for a steady return on your money, a 4 or 5% return sounds pretty good compared to the interest rates a few years ago. The dilemma I’ve been going through is whether to continue to put money in the stock market or do I put my money in my savings?
I have stocks that pay out dividends between 1-8%. I’m OK with my portfolio because ones with a lower dividend yield have potential for price growth. The ones with a higher dividend yield tend to stay in the same price range and not grow.
For me, the 4-5% interest rate is very appealing. It’s not volatile. It’s a steady return. The rates will likely not go down. If you’re not comfortable with the ups and downs of the stock market but want a solid return, the savings account could be your answer.
Marcus by Goldman Sachs is offering a 5.15% rate for 3 months, as of May 19, after opening with them which includes an added 1% referral bonus if you use the referral link. A savings account giving over 5% interest hasn’t been seen in years. Opening an account is simple and transferring your money is just as easy. Savings rates are increasing and can be a safe place to put your money at while receiving a decent return. If you are interested in following my journey, email subscribe to get alerts of latest posts or follow me on Facebook, Instagram, and Pinterest.
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