Give a second look at a high-yield savings account
Time to change where you put your spare change?
NerdWallet CEO Tim Chen said that in a changing economy and an inflationary environment, consumers should re-examine high-yield savings accounts for the first time in 20 years.
“The silver lining is that if you put money into work, you’re also going to earn more now. So I really think people should start for the first time in 20 years looking at things like savings accounts at high yield and really trying to bank those extra dollars. They’re going a little deeper now,” Chen said.
FULL VIDEO TRANSCRIPTION BELOW:
Katherine Ross: When you look at NerdWallet, I wonder, what do you see from the user base? What are people looking for?
Tim Chen: A year ago, there was a ton of interest in things like cryptocurrencies, trading, stocks, refinancing, mortgages, etc., and it really, really plummeted. But, you know, this year people are going back and traveling again. So we see tons of people looking for things like travel, credit cards. So it’s a bit like the story of two different years.
I think we definitely see the inflationary pressures. We’ve done internal studies that show nearly a third of Americans have taken on credit card debt in the past year in an attempt to ride out inflation. So I think that’s a very real thing for a lot of people in that it’s getting harder to borrow money and things like that. But the silver lining is that if you put money into the work, you will also earn more now. So I really think people should start for the first time in 20 years looking at things like high yield savings accounts and really try to bank those extra dollars. They go a little further now.