Local savers benefit as online banks offer competitive 4% interest amid federal rate cuts

The Federal Reserve has begun to cut interest rates, and this will help many afford big purchases. However, it also means interest rates on savings accounts have also decreased.

Many Americans say they are working harder and spending less these days. While they are paying more for their interest on purchases, they are seeing little to no return on their investments.

The average interest rate for savings accounts in October is 0.62%, however, some online banks are offering up to 4%, according to Bankrate. These banks include Credit Karma, Capital One and Lending Club.

Federal I-Bonds, saving accounts issued by the U.S. Treasury Department is currently at 3.9%. With more federal rate cuts, saving interest rates could continue to fall.

Make sure to shop around for the best interest rates and be hesitant when opening new accounts, that way you don’t waste your money.