What is compound interest?

Compound interest is when you earn interest on both your principal balance and previously earned interest, accelerating your savings growth.

Do I need to pay taxes on a savings account?

Yes, interest earned on savings accounts is considered taxable income and must be reported to the IRS.

Which is best: Fixed rates or variable rates?

Variable rates can offer higher initial returns but may fluctuate, while fixed rates provide stability. The best choice depends on your financial goals and risk tolerance.

How do banks make money on savings accounts?

Banks use the money deposited in savings accounts to make loans to other customers, earning interest on those loans.

Is my money safe in an online-only bank or neobank?

As long as the bank is FDIC-insured, your money is protected up to $250,000 per depositor, per account ownership category, regardless of whether it's an online-only bank or a traditional institution.

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SAVINGS ACCOUNT INTEREST RATES TODAY, DECEMBER 16, 2024; RATES AS HIGH AS 5%

Best savings account interest rates today, December 16, 2024; rates as high as 5%

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