Savings Rate at 5.3%

Saving money is one of the smartest financial moves you can make whatever the state of the economy. Many Americans have changed their spending ways and are adding to savings accounts. The personal savings rate was 5.3 percent of disposable income in November, compared with 5.4 percent in October, according to a recent report from the Bureau of Economic Analysis.

Although savings rates are not very high–savings accounts are paying an average of 0.39 percent interest and money market accounts are averaging 0.32 percent–it still makes sense to build a nest egg. Getting started on a savings program now can help you become disciplined about building up an emergency fund. If you stick with a savings plan, the money will add up sooner than you think, especially if you put it away and don’t touch it until it’s really needed.

Shop around to find the right savings account for your money. If you know that you won’t need the funds for a year or two, consider opening up a certificate of deposit to earn a higher interest rate. CD rates for a 1-year term are averaging 0.77 percent, but if you shop around to compare bank deals you should be able to find an account with higher promotional rate.

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