Most Americans have savings accounts, but many are unaware of how their idle funds generate interest. A recent study involving 2,000 Americans, commissioned by LendingClub and conducted by Talker Research, found that 89% of respondents are familiar with at least one type of savings account. The most recognised being a standard savings account, followed by retirement accounts, certificates of deposit (CDs), and health savings accounts (HSAs).
However, awareness drops significantly when it comes to specific types of accounts. Only 30% of respondents knew about high-yield savings accounts (HYSAs), 18% about 529 college savings plans, and 13% about cash management accounts. Interestingly, while 79% have a savings account and earn interest on their funds, 43% are unaware of the actual interest rate their account offers.
