A $5.5 trillion savings wipeout is raising risks for the US economy just as student loan payments are about to restart
A $5.5 trillion savings wipeout is raising risks for the US economy just as student loan payments are about to restart
A sharp slide in Americans' personal savings is threatening to hurt consumer spending, which has so far helped the US economy hold up in the face of recession warnings.
Billionaire investor Bill Gross recently weighed in on falling consumer savings levels, warning that Americans could run out of their pandemic savings later this year, paving the way for a recession.This may be one of my favorite “out of touch billionaire” comments I’ve ever seen.
4Banks aren't helping the savings accounts, I don't think I've had a lower interest rate on my savings account in my lifetime.
3Look into High-Yield Savings Accounts (HYSAs) such as Marcus by Goldman Sachs or Ally. Majority of them will be online-only, but they tend to offer a higher rate than any brick-and-mortar bank.
I personally use Ally because they also offer a pretty cool CD that you can break at any time with no penalties - I got in when it was 4.35%, but iirc it was at around 4.25% last time I checked. I have a 6-month emergency fund in there, so it can accrue interest while I don’t need it.
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