Interest rates are pretty high these days. That’s great for retirees who need their savings to generate income — but don’t assume that just because rates are high you’re automatically getting them. The going rate at many banks and brokerage houses is abysmally low.

The national average interest rate paid on savings is 0.46% (as of April 15, 2024), according to the Federal Deposit Insurance Corporation (FDIC). Considering the Effective Federal Funds Rate is 5.33% (as of May 2024), if you have money in a savings account, there’s a good chance you could be earning a lot more interest somewhere else.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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