Hey kids! Did you know banks pay you a little extra money if you keep your savings with them? It's called interest, and it's like getting a reward for saving!
Recently, interest rates on money market accounts (MMAs) – special bank accounts – have changed. These accounts are a bit like piggy banks for grown-ups, but they earn interest.
Let's learn about it!
- Banks are offering different rates of interest on money market accounts.
- The average interest rate is around 0.64%, but some banks offer much higher rates, even over 4%!
- This means your money grows faster in those high-interest accounts!
| Interest Rate | $10,000 after 1 year |
|---|---|
| 0.64% (average) | $10,064.20 |
| 4% (high-yield) | $10,408.08 |
