“Missed Opportunity”: Only 21% of Banked Adults Have High-Yield Savings Accounts

Charlotte, NC — August 24, 2020 —  More than half of Americans are not taking full advantage of their savings opportunities, according to a new survey from NextAdvisor.

The survey found that 45% of all Americans keep at least some of their savings in a checking account, which provides little to no interest. Thirty-five percent of respondents said they keep their savings in a low-yield account at a physical bank, and 7% reported using a low-yield account at an online bank. 

Just 21% said they have a high-yield savings account, either at a physical or online bank. 

Thirteen percent of banked Americans do not have any savings at all, according to the report. 

High-yield savings accounts don’t offer as much interest as they used to, but you can still find accounts that offer 50 times more interest than a typical checking account does. 

Click here for more information: https://time.com/nextadvisor/banking/savings/high-yield-savings-survey/

“For savers, interest rates are crummy right now. But you don’t want to make a bad situation worse,” said Adam Auriemma, editor in chief of NextAdvisor. “Finding a savings account with a higher interest rate—and no fees—is definitely worth your time.” 

“It seems like a missed opportunity. It takes all of 10 minutes to get a higher interest rate,” said Jill Schlesinger, CFP, business analyst for CBS News and host of the “Jill on Money” podcast, in reaction to the findings. Schlesinger is also a contributor to NextAdvisor.  

When choosing a savings account, Americans ranked the following factors as some of the most important to consider: fees, or lack thereof (61%), convenience (56%) and interest rates (53%). 


Amid the COVID-19 outbreak, 43% of banked Americans indicated the COVID-19 outbreak has reinforced their expectation that banks should have online and mobile functionality

For More Information: Megan Wilburn | Public Relations Specialist | press@nextadvisor.com

Methodology

NextAdvisor commissioned YouGov Plc to conduct the survey. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1,202 US adults (aged 18+). Fieldwork was undertaken August 6-7  2020. The survey was carried out online and meets rigorous quality standards. It employed a non probability-based sample using both quotas upfront during collection and then a weighting scheme on the back end designed and proven to provide nationally representative results.

About NextAdvisor

NextAdvisor has partnered with TIME to help consumers secure their financial futures and achieve long-term financial success. NextAdvisor offers expert advice on time-tested strategies, fresh insight on changing market conditions, and analysis of the latest financial tools and resources. Offering relevant tools and product options to help support consumers in identifying next steps in their decision-making process across multiple categories including savings, deposits, loans, and mortgages. For more information, visit www.time.com/nextadvisor and @NextAdvisor.