With interest rates so low, many consumers wonder where to find the best place for their savings. High-yield savings accounts are now paying around 0.6%, while the national average for traditional savings accounts is a meager 0.05% according to the FDIC.
Other options that offer more yield, however, often mean taking on more risk and sacrificing liquidity.
“If you think you see something higher than 2%, with liquidity, be very careful—there’s no silver bullet here,” says Zach Abraham, Chief Investment Officer at Bulwark Capital Management.
Zach told the Wall Street Journal that he’s seen people think outside the traditional options, looking instead at accounts with transactional requirements such as balance thresholds or debit-card usage. He has spoken to some clients about moving cash to CDs that fit their timeline. As of October 2020, the national average for 2-year CDs is 0.23% according to the FDIC.
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