Also in this playlist...
This transcript is automatically generated
Are right we might have to come up with a new name for the bank savings account.
The national average interest rate banks are charging has fallen below -- -- percent.
When you add on fees even actually be losing money so maybe we should call them losing accounts instead of saving accounts.
For more I'm joined by Greg McBride senior financial analyst with Bankrate dot com.
Greg welcome it I find this story so disturbing for small investors across the country because you know what.
They probably don't even know they're losing money.
And here's the thing Jerry I -- some people losing money yes.
But does or not people that I would call savers you know the people that are losing money.
That are paying more in fees and they're earning and interest.
Are going to be people that probably don't have savings accounts that have very low balances they're generating overdrafts are paying monthly service fees -- are not keeping enough of a balanced.
Earning money now interest rates or allow for everybody across the board that's the environment we have.
The truth sabres are not only pursuing the highest yielding savings accounts to get a better return.
But there by being more proactive with their money they're avoiding those -- in those balance requirements to break -- I.
I'm not quite considerable -- -- I hear what you're saying I know a lot of people do bad things out there but there are also a lot of people little old ladies sitting with money in savings at Yahoo! today.
Are losing money because -- -- maybe they didn't anticipate.
Interest rate is no where they have no return and I have to tell you my heart goes out to them because.
This is a tough environment even for people who -- doing the right thing.
-- to you search out this marketplace how do you find a way to make money if all you're looking to do.
Is have a nice steady low rate of return for saving.
-- I agree that's really the key is that -- -- take this environments sitting down.
You have to look around and seek out the better alternatives to get the best value for your money.
For example at Bankrate dot com we have a free search engine we can find the highest yielding accounts that are available.
Nationwide -- you can also look in your local area that's what you prefer compare credit unions as well a lot of people are not eligible for membership in credit unions.
What a turnover a lot of stones make sure that you're finding the best account -- the best return for your money.
Mean -- if -- if you're just.
Opting for the convenience of the bank across the street or.
-- -- the one -- has the branch closest to your office you're not gonna get the best rate of return you've got to be a little bit more proactive and and I really how you're going to truly get.
Return on your voice and also -- credit unions credit unions historically paid more than banks and their -- -- Typically lower.
Another I wanna mention on your site talk about Bankrate dot com you also have a bank rating system.
So if on the search interment turn up names of banks haven't heard before maybe not familiar with a little uneasy about it might make sense to actually look at the rating on on your system on the website and see if it's safe or not.
What do you think about online banks people get nervous about online banks but they tend to pay higher rates.
They do tend to pay higher rates and here's the -- people get nervous about the term on line the fact is most of these banks.
They are either the online division of an existing brick and mortar bank albeit one that may be located at different part of the country.
Or third division of a much larger financial services conglomerate -- We definitely -- online -- I think it's something something being run out of somebody's garage is simply not the case there's there's subject of the same regulation.
Yeah -- -- federal deposit insurance that you get from the bank across the street.
Greg I think it's going to be interesting to see if people get upset about this do you think there's a possibility out there that this could.
You know by banks in the -- That people could you know pick up and -- -- -- and go to our credit union -- an online bank leave those big banks in the dust.
Well people are without a doubt -- they're taking a greater role in their personal finances and so yes I -- More so than in the past people are going to be more proactive about making sure that they're getting the best return -- their money and it's just a product of this economic environment.
However that's not going to be universally the case I mean they're always going to be people that are.
Rally nurses a powerful thing and and they're always going to be people that you know they -- -- -- little sloppy with their money you're.
The other -- content where they are and they're not pursuing them the better options that are out there.
But you can't make a difference and you showed us how Greg thanks for the help today we appreciate it.
-- -- -- -- --
Filter by section