Core Viewpoint - Grant Cardone argues that saving money is a significant financial mistake, emphasizing that it does not contribute to wealth growth and suggesting that individuals should invest instead [1][2]. Group 1: Saving Money - Cardone states that saving money in a bank account is ineffective, as banks offer 0% interest while using deposited funds for lending [1]. - He highlights the detrimental impact of inflation, explaining that $100,000 saved in 2020 would only have the purchasing power of about $75,000 by 2024 [2]. Group 2: Middle Class Struggles - Cardone believes the middle class is financially stagnant due to outdated saving practices, which he claims are not yielding results [3]. - He criticizes traditional financial advice, asserting that many Americans are misled by the same outdated principles, leading to widespread financial struggles [4]. Group 3: Investment Philosophy - Cardone advocates for investing in income-producing assets and utilizing tax advantages as a means to build wealth, contrasting this with the ineffective strategy of saving [2][4]. - He encourages individuals to adopt a mindset of entrepreneurship and calculated risk-taking, which he views as essential for financial success in the modern economy [4].

Key Takeaways The Huge Gap Between Big-Bank Rates and What You Can Earn at Just-as-Safe Smaller Banks With talk of an expected Federal Reserve rate cut in the headlines this week, savings rates are back in focus. But for most households, the bigger issue isn't the Fed's next move—it's how much your current savings account is paying. Many savers keep their money at Chase, Bank of America, or Wells Fargo simply because that's where they already bank. But that familiarity comes at a steep cost: All three insti ...

Core Insights - The article highlights the disparity in savings account interest rates across different banks, emphasizing that many savers are earning significantly lower rates than they could be by exploring other options [2][3][8]. Savings Rates Comparison - Major banks like Chase, Bank of America, and Wells Fargo offer a mere 0.01% APY on standard savings accounts, which is effectively a near-zero return [4]. - The national average savings rate across FDIC-insured banks is only 0.40% APY, indicating that many savers are not maximizing their earnings [5][8]. Impact of Low Savings Rates - Low savings rates can lead to a loss of purchasing power, especially when the APY is below the current inflation rate of 3% [6][15]. Alternative Savings Options - Other well-known banks provide significantly better APYs, ranging from approximately 3.25% to 3.65%, which is a substantial improvement over the rates offered by the largest banks [8][9]. - The highest-yield savings accounts currently offer rates between 4.15% and 5.00%, primarily from smaller banks and credit unions that are competing for deposits [12][13]. Conditions for High APYs - Some of the top rates, such as 5.00%, may come with conditions like setting up direct deposits or limits on the balance that earns the high APY [13]. - Many high-paying accounts in the 4.25% to 4.75% range do not have special requirements, making them accessible for savers looking to maximize earnings without additional steps [14].

Core Insights - The article discusses a financial decision made by Ryan Ermey regarding his student loan and investment strategy as he prepares for a wedding in 2027 [1][2][3]. Financial Strategy - Ermey has shifted his financial strategy from investing extra savings to saving for his upcoming wedding, leading to a significant cash position [2]. - He is currently making minimum payments on his student loan, which has an interest rate of 6.55%, and will not be fully paid off until late 2027 if he continues this approach [3][4]. Expert Opinions - Financial planners generally advise paying off high-interest debt, such as Ermey's student loan, given that his savings account earns only 3.4% interest annually [5]. - The guaranteed return from paying off the student loan at 6.55% is considered more beneficial than potential earnings from savings accounts or investments [5][6]. Investment Returns - Historical data indicates that a diversified U.S. portfolio has yielded a 7.1% return over 30 years, while an aggressive portfolio in the S&P 500 has returned 10.5% [7].

Core Insights - The Federal Reserve has cut the federal funds rate three times in 2024 and recently made a second cut in 2025, leading to a decline in deposit interest rates, including money market account (MMA) rates [1] - The national average rate for MMAs is currently 0.59%, while top high-yield accounts offer rates exceeding 4% APY, significantly higher than the national average [2][9] Group 1: Money Market Account Rates - The importance of comparing MMA rates is emphasized, as interest rates vary widely among banks, particularly online banks and credit unions, which often provide competitive offers [3][4] - Online banks have lower overhead costs due to their web-based operations, allowing them to offer higher deposit rates and lower fees [4] - Credit unions, as not-for-profit financial cooperatives, also provide competitive rates and fewer fees, although membership requirements may apply [5] Group 2: Features and Considerations of Money Market Accounts - Money market accounts are suitable for short-term savings goals, offering higher interest rates than regular savings accounts and easier access to funds compared to certificates of deposit (CDs) [5][7] - These accounts are considered low-risk and are FDIC-insured up to $250,000 per depositor, per institution, making them safer than money market funds [6] - Many MMAs require a minimum balance to earn the highest advertised rate, and failure to maintain this balance may result in fees or lower rates [6] Group 3: Access and Usage of Funds - While MMAs allow access to funds, they may limit the number of transactions per month, which is a consideration for those needing frequent access [7] - MMAs are recommended for individuals who want to earn more interest than a regular savings account without locking funds in a CD and can maintain the minimum balance to avoid fees [7][8]

Core Insights - Savings accounts are common financial tools that allow individuals to store money securely while earning interest, represented as the annual percentage yield (APY) [2] - Interest earned in savings accounts is considered taxable income, and banks issue a Form 1099-INT for interest earnings of $10 or more [3] - The amount of interest earned on a savings account depends on the interest rate, compounding frequency, and additional contributions [4][5] - Experts recommend keeping three to six months' worth of essential expenses in savings, but the amount can vary based on individual financial situations [6][7] - Savings accounts allow for withdrawals, but banks may impose limits and fees on excessive transactions [8] - The best savings account varies by individual needs, with online banks and credit unions often providing competitive options [9][10] - Multiple savings accounts can help track different savings goals and maximize interest earnings, but they also require more management [11][12] - The 50/20/30 rule is a budgeting strategy that allocates 50% of after-tax income to needs, 30% to wants, and 20% to savings [13] - Savings accounts have routing numbers that identify the bank, and they are typically FDIC-insured up to $250,000 per depositor [15][16]

🚨UPDATE: COINBASE LAUNCHES A UK SAVINGS ACCOUNT WITH 3.75% VARIABLE INTEREST, STARTING NOV. 11 FOR SELECT USERS ...

Core Insights - The Federal Reserve has cut the federal funds rate three times in 2024 and recently made a second cut in 2025, leading to a decline in deposit interest rates, including money market account (MMA) rates [1] - The national average rate for MMAs is currently 0.59%, while top high-yield accounts offer rates exceeding 4% APY, significantly higher than the national average [2][9] Group 1: Money Market Account Rates - The importance of comparing MMA rates is emphasized, as interest rates vary widely among banks, particularly online banks and credit unions, which often provide competitive offers [3][4] - Online banks have lower overhead costs due to their web-based operations, allowing them to offer higher deposit rates and lower fees [4] - Credit unions, as not-for-profit financial cooperatives, also provide competitive rates and fewer fees, although membership requirements may apply [5] Group 2: Features and Considerations of Money Market Accounts - Money market accounts are suitable for short-term savings goals, offering higher interest rates than regular savings accounts and easier access to funds compared to certificates of deposit (CDs) [5][7] - These accounts are considered low-risk and are FDIC-insured up to $250,000 per depositor, per institution, making them safer than money market funds [6] - Many MMAs require a minimum balance to earn the highest advertised rate, and failure to maintain this balance may result in fees or lower rates [6] Group 3: Access and Usage of Funds - While MMAs allow access to funds, they may limit the number of transactions per month, which is a consideration for those needing frequent access [7] - MMAs are recommended for individuals looking to earn more interest than a regular savings account without locking funds in a CD, provided they can maintain the minimum balance [7][8]

Overview of Savings Interest Rates - The national average savings account rate is currently 0.40%, a significant increase from 0.06% three years ago [2] - Despite the low national average, some top savings accounts are offering rates as high as 4% APY and above [2][3] Best Savings Account Rates - The highest savings account rate available today is 4.1% APY, offered by Openbank, LendingClub, and Jenius Bank [3] - The amount of interest earned from a savings account is determined by the annual percentage rate (APY) and the frequency of interest compounding, which is typically daily [3] Interest Earnings Examples - A $1,000 deposit at the average interest rate of 0.40% would yield a total of $1,004.01 after one year, resulting in $4.01 in interest [4] - In contrast, a $1,000 deposit in a high-yield savings account at 4% APY would grow to $1,040.81, earning $40.81 in interest over the same period [4] - For a $10,000 deposit in a high-yield savings account at 4% APY, the total balance after one year would be $10,408.08, resulting in $408.08 in interest [5]

Core Insights - The Federal Reserve has cut the federal funds rate three times in 2024 and recently made a second cut in 2025, leading to a decline in deposit interest rates, including money market account (MMA) rates [1] - The national average rate for MMAs is currently 0.59%, while top high-yield accounts offer rates exceeding 4% APY, significantly higher than the national average [2][9] - Online banks and credit unions are highlighted as the best sources for competitive MMA rates due to lower overhead costs and not-for-profit structures, respectively [4][5] Group 1: Money Market Account Rates - The national average MMA rate is 0.59%, but high-yield accounts can offer rates over 4% APY, which is more than six times the national average [2] - Online banks typically provide the best MMA rates due to reduced operational costs, allowing them to offer higher deposit rates [4] - Credit unions also offer competitive rates, often ranging from 3% to 4% APY, but may have membership requirements [5] Group 2: Benefits and Considerations of Money Market Accounts - Money market accounts are suitable for short-term savings goals, offering higher interest rates than regular savings accounts and easier access to funds compared to CDs [5][7] - These accounts are considered low-risk and are FDIC-insured up to $250,000 per depositor, per institution, making them safer than money market funds [6] - Many MMAs require a minimum balance to earn the highest advertised rates, and there may be transaction limits that could affect accessibility [6][7]