According to the American Bankers Association, the average interest rate on savings accounts has dropped to just .47 percent. The Federal Reserve interest rate cuts may help those homeowners with adjustable-rate mortgages to pay lower interest rates, but the rates on savings accounts have taken a hit as the Fed has taken its actions.
The New York Post came up with this eye-opening example that makes clear just how ineffective some savings accounts can be for someone trying to save. Because ATM fees have continued to increase, making just one out-of-network ATM transaction each month on a $7,500 account would probably cause you to pay more in fees than you're making in interest. And if your account has a lower balance you'd be coming out even further in the red.
Shop around for better interest rates and banks that absorb out-of-network ATM fees. It just doesn't make sense to lose money by simply using your bank account.