Barclays became the fourth bank in the past week to raise the interest rate it pays on online savings, raising its rate from 0.90% to 1.00%. With this rate hike, savvy investors are able to earn 100x as much as they could in uninsured money market funds, or 10x more than they could in most brick-and-mortar bank accounts. With individual investors holding $900 billion in U.S. money market funds today, were all these investors to use Max instead, they could earn a collective $8.9 billion more each year in interest income.
But what does that mean for an individual investor? An extra 0.90% of yield amounts to an extra $900 per year per $100,000 of cash on deposit. This is effectively found money, and it can be put to good use — reinvested to compound over time, contributed towards tuition or a family vacation, or donated to a charitable cause that’s meaningful to you. You can use the Max calculator to see how much more you could earn.
Certainly, there are other ways to earn higher yield, but most involve locking up money for longer periods of time, or taking on risk. With Max, cash is spread across your own FDIC-insured bank accounts at leading financial institutions such as Barclays, GE Capital and American Express, ready for you to access it when you need it. Max tracks changes in rates for you, helping your cash move to where it can earn the highest yields, automatically.
You can learn more at www.MaxMyInterest.com.