I have been sitting on my savings for about three years — between the hassle of opening accounts as a minor and college expenses it just has not been the right time to open a new account. However, now that I have more time available over the summer, I have reconsidered my savings account.
My current account, a PNC Virtual Wallet savings account, earns “interest” at a rate of 0.01%, far below the national average. I decided to switch to a Discover Online Savings account, which sits at 2.1% interest. For a $4,000 deposit, this is a difference of $83.60 in interest over the course of a year. For reference, the average rate of inflation in the US is about 2.0% according to the consumer price index, so it is important to note that most of the “earnings” from interest are simply offsetting inflation.