By Steve GarmhausenGood news for savers: interest rates on high-yield savings accounts and CDs are beating inflation.
Savings accounts and CDs, even the best of them, paid interest rates below the rate of inflation.
If inflation is, say, 5% and your savings account pays 1%, $1,000 in cash will be worth just $960 in a year.
The average savings account interest rate is just .42% and the typical one-year CD pays 1.72%.
“The difference between an online savings account and the average brick and mortar account is huge right now,” says Tumin.
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