Life Kit Put your savings to work
46 snips
Apr 24, 2023 
In this discussion, Arzu Resvani, a personal finance and housing reporter for NPR, sheds light on the impact of inflation on savings. She emphasizes the importance of reassessing savings strategies as inflation rates rise above typical bank interest offerings. Resvani shares insights on choosing better savings accounts, exploring options with smaller institutions, and highlights alternative methods like certificates of deposit and I-bonds. She encourages proactive financial planning to safeguard savings and maximize returns.
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Inflation and Savings
- Savings accounts with low interest rates can lose value due to inflation.
- The difference between the interest rate and the inflation rate determines the loss.
Check Savings Rates
- Check your savings account's interest rate, especially if it's an old account.
- Bigger banks often offer lower interest rates, consider smaller banks or credit unions.
Smaller Banks, Higher Rates
- Smaller banks often provide better interest rates than larger banks.
- This is due to their need for deposits to grow their business.