Interest Rates On Savings Accounts Are Pathetic. Here's Why You Should Still Have One

Interest Rates On Savings Accounts Are Pathetic. Here's Why You Should Still Have One

In response to the COVID-19 pandemic, the US Federal Reserve has lowered the federal funds rate.

According to Business Insider, that means high-yield savings account rates are going down, too.

In fact, nearly all high-yield savings accounts are decreasing their interest rates in 2020.

Consumers may wonder, why even bother with putting money into a savings account?

Even with lower rates, high-yield savings accounts earn more than checking and regular savings accounts.

That makes them ideal places to store money for short-term savings goals, like buying a car or a mortgage downpayment.