Anonymous
Anonymous asked in Business & FinancePersonal Finance · 1 month ago

Are you "locked in" to an interest rate when you start a savings account?

I feel like it's a good idea to get a savings account as early as possible, but what I'm wondering about is if interest rates go up in the future, would I be stuck with the rate at which I opened the savings account?

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  • 1 month ago

    Not usually--interest rates can go up or down. Only when you use a 'fixed term' account, such as an IRA, or Certificate of Deposit is it locked in for the term of the account. However, savings interest rates are pretty low. Shop around for your best rate. 

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  • 1 month ago

    only if its a CD where you are locked into it for the term of the deposit only.

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  • 1 month ago

    Nope, but if you want a locked in interest rate, you might want to think about a CD (Basically where you put a certain amount of money for a certain amount of time for a fixed interest rate. They are normally lower, but they are safer in case bank's interest rates goes down, the CD rate doesn't). 

    And if you looking for a higher (than your average bank like BOA, WF, who pays 0 to nothing), try looking into Ally or CIT (don't mix it up with CITI bank). 

    They are both online but really easy to use. Ally's customer service, from experience is amazing. And they just have lots of benefits and cool features that I love. 

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  • Erik
    Lv 7
    1 month ago

    Nope, they go up and down (mostly down for me).

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  • Joe
    Lv 4
    1 month ago

    No.  Savings accounts do not have a fixed interest rate, unlike CD accounts. 

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  • 1 month ago

    No.  Interest rates on savings accounts often change.  CD's have locked rates, but savings accounts do not.

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  • 1 month ago

    No.  The rates vary over time.  They are close to 0% compared to what you can get elsewhere.  Starting out, that's fine to put your money there, but when it starts being meaningful you should look for better investments to have your money grow while it works for you.

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  • Judy
    Lv 7
    1 month ago

    no, you get whatever the rate is each month.

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  • 1 month ago

    Interest rates on savings accounts are not guaranteed NEXT MONTH, much less for life.

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  • Anonymous
    1 month ago

    No. Thats CDs...................

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