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Bank Interest Rates are Hurting Customers

Better to Put Your Money Under Your Mattress?

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.


Join The Conversation
JaimeLeah526 JaimeLeah526 9 years
I wish I could say that we had more money in a savings to worry about but we don't.
princessjaslew princessjaslew 9 years
much as i want to put my money elsewhere...i really don't have much. i sure hope this recession ends. soon.
Fiend Fiend 9 years
i suggest having more then one checking acct. I have my main acct at Citibank which i get my direct deposit into and i pay my bills from. Then i have a B of A acct which i put $10 in each check so that i have access to money just in case there isnt a Citibank around. I live in NY and there are alot of B Of A's in my area. Citibabk isnt as prevalent, but its 5 minutes from my house so i usually stop there before i go out and take out a weeks worth of cash so i dont have any reason to have to hit up a grocery store. Or another way to save atm fees is get cash at the grocery store when your shopping, or at a CVS.
maybeimnot maybeimnot 9 years
Could there be a suggestion for some banks that fit that description? I am having a hard time finding some that have ATMs that are around enough. Plus, I'm considering a move from NC to OH, which makes it even harder!
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