A recent WalletHub survey reveals that a majority of Americans are facing difficulties keeping their savings pace with inflation, despite rising interest rates offered by some banks. The survey highlights consumer frustrations with bank fees and overdraft charges, while also emphasizing a preference for lower fees and higher interest rates when choosing a bank.
Nearly two-thirds of Americans say their savings aren't keeping up with inflation, according to a new WalletHub survey. This sentiment prevails even as some banks offer interest rates above 5%, with many consumers feeling their financial institutions aren't doing enough to help them navigate rising costs. The survey also reveals other frustrations, with 40% of Americans prioritizing low fees when choosing a bank and 75% supporting a $5 cap on overdraft fees.
Meanwhile, concerns about unfamiliarity are holding some back from exploring smaller banks and credit unions that could offer better deals. \With inflation outpacing savings, 65% of Americans say their bank accounts aren't keeping up. Even with interest rates on some savings accounts and CDs exceeding 5%, many feel these gains fall short of offsetting rising costs. High interest rates are also changing how people manage their money, with 64% of respondents saying they're spending less. These shifts highlight the growing struggle to maintain financial stability in today's uncertain economic climate. \When choosing a bank, fees are the biggest factor, cited by 40% of respondents. Interest rates come in second at 30%, while branch locations (15%), customer service (10%), and reviews (5%) round out the list. The survey also found that 65% of Americans say they would switch bank accounts for lower fees, and 53% would switch for higher interest rates. However, familiarity with a bank plays a role—39% of people are hesitant to try smaller banks or credit unions due to a lack of familiarity, despite their potential for better deals. Overdraft fees remain a sore point for many consumers. A strong majority—75% of respondents—support a $5 cap on overdraft fees, which could save account holders money while boosting trust in financial institutions.
INFLATION SAVINGS BANKING FEES INTEREST RATES
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