“Why 40% of Savers Aren’t Moving to Higher-Yielding Accounts Despite Better Rates”

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Only 1 in 5 Savers Believe They Are Getting the Best Yields on Their Saving Accounts

Experian’s survey of 1,012 Americans revealed that only 19% of savers believe they are earning 3% APY or more on their savings accounts. Despite the rise in interest rates since early 2022, 25% of respondents reported earning no more than 1% APY.

Even When Better Rates Are Available, 40% Say It’s Not Enough for Them to Move Savings

Among those earning less than 3% APY, 40% stated that the higher yield was not sufficient to justify moving their savings. Interestingly, 30% of savers were unaware of higher-yielding accounts, with younger savers being particularly uninformed.

More Savers Expect Credit Card Interest Rates to Climb Than Expect Savings Yields to Climb

Nearly half of the survey respondents (46%) expect savings rates to remain the same by the end of 2023. However, 60% believe that credit card APRs, currently averaging 20.92%, will increase by December. Only 9% expect credit card APRs to decline, and just 18% foresee a drop in savings account yields.

Not All Consumers Yet Motivated to Save

Despite the awareness of higher savings rates, many consumers are not motivated to switch to high-yield savings accounts. Surprisingly, higher-income respondents are less likely to be aware of better savings options, even though they are more informed about current savings yields.

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