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Key Takeaways
- According to a Vanguard survey, the majority of Americans believe their savings earn less than 3% in interest.
- More than half of the respondents said that they save money in traditional bank checking or savings account, which earns them little interest. Many high-yielding accounts are available. Some have rates of over 4%.
- About 70% of respondents said they planned to change their savings plans within the next year primarily due to inflation.
New research suggests that Americans are trying to save money, but are leaving money on their table.
A recent Vanguard survey found that nearly 90% of Americans either currently save or plan on saving for short-term objectives. Vanguard reported that more than half of Americans use traditional bank checking or savings accounts, which offer an average interest rate of 0.41%.
According to the Vanguard study, almost 60% of respondents said that their savings earn less than 3% in interest. That echoed another recent survey from Santander Bank, which found that almost 70% of respondents said they weren't using higher-rate accounts.
“By leveraging accounts with competitive yields and establishing intentional savings strategies, Americans can make their money work harder,” Andrew Kadjeski, Principal and Head of Brokerage & Investments at Vanguard, said in the report.
There are a number of high-yielding savings accounts that offer interest rates above 4%.
Many Americans hope to change their saving plans soon. Nearly 70% of Vanguard survey respondents said that they intend to adjust the plan in the coming year, with inflation as the main factor. Another report stated that Americans did not reach their savings goals in the past year.
