Did you know banks pay you interest on your money? It's like getting a little extra for saving! Recently, interest rates have changed. This affects how much money you earn on savings accounts and something called money market accounts (MMAs).
- Banks offer MMAs, which are like special savings accounts.
- The average interest rate is now 0.64%, but some offer over 4%!
- The higher the interest rate, the more money you earn.
- There are usually limits on how much you can take out each month.
| Interest Rate | $10,000 after 1 year |
|---|---|
| 0.64% (average) | $10,064.20 |
| 4% (high-yield) | $10,408.08 |
