Today's high interest rate environment has led to rising borrowing costs for consumers, but there is a silver lining for savers: Their idle cash can generate plenty of income – if they can find the right savings products.
The Federal Reserve's key interest rate is sitting at a target range of 5.25% to 5.5%, its highest level in more than 22 years .
The firm found that about six out of 10 middle-income Americans are leaving their money in lower-yielding accounts, even as interest rates have risen.
"Or, there's a perception that the switching costs, or the friction, related to making a change is more work than the benefit of getting higher rates."
Meanwhile, LendingClub offers a 1-year CD at a 4.4% APY, while its high-yield savings account offers a 5% APY.
Persons:
Tim Wennes, There's, Wennes, —, Darla Mercado
Organizations:
Santander U.S, Federal, Financial, LendingClub