Most Americans Aren’t Getting The Most Out of Savings Accounts, Research Suggests

Americans are trying to save, but new research suggests that many are leaving money on the table.

Nearly 90% of Americans currently save or plan to save for short-term goals, according to a recent Vanguard survey. But more than half are using traditional bank savings accounts or checking accounts, Vanguard said, where average interest rates are roughly 0.41%

Almost 60% say that their savings are earning less than 3% interest, according to the Vanguard survey. That echoed another recent survey from Santander Bank, which found that almost 70% of respondents said they weren’t using higher-rate accounts.

“By leveraging accounts with competitive yields and establishing intentional savings strategies, Americans can make their money work harder,” Andrew Kadjeski, Principal and Head of Brokerage & Investments at Vanguard, said in the report.

There are many high-yield savings accounts currently available, several with interest-rates exceeding 4%.

Many Americans say they hope to change their savings plans soon: Almost 70% of Vanguard respondents said they intend to adjust their plan in the next year, with inflation being the biggest factor. But another report said Americans fell short of their savings goals last year.