Today, savings accounts offer higher returns than in the past. This is due to the increase in interest rates.. However, you should know that not all banks offer the same thing, and the returns vary a lot between them.
And it is that there are companies that offer only 0.01%, while others offer more, up to 3.5% or 4.5%.
On average, in the US, banks offer an annual rate of return of 0.35%.
Next, we share the money you will earn in the year in the amount of $20,000, depending on what percentage of annual return the bank can offer you.
With an average annual return of 0.01%, you will earn $2 per year.
With an average annual return of 0.35%, you will earn $70 per year.
With an average annual return of 3.50%, you will earn $700 per year.
With an average annual return of 4.00%, you will earn $800 per year.
–With an average annual return of 4.50% you will earn $900 per year.
The reason interest rates are higher on some savings accounts is because they are from banks with an online-only presence.. In other words, they do not have physical branches.
This helps them achieve savings on many costs, such as fixed payments from branches and salaries of more employees.
By saving on this, they can give more interest than conventional banks.
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