Justin Boggs is a writer for the E.W. Scripps company. Justin covers anything from politics to sports and entertainment.
Now that the Federal Reserve has lowered interest rates, one potential downside is that savers might not see their accounts grow nearly as fast.On Tuesday, Apple reduced the rate for its saving accounts from 4.4% a year to 4.25% a year. Previously, a person with $10,000 in their account would have seen their account grow by $440 over the course of a year. Now, that amount would drop to $425.Earlier in the year, Apple had offered a 4.5% annual yield on its savings account.
'RELATED STORY | What will Fed rate cuts mean for consumers?Raising interest rates is considered one of the government's most effective tools for combating inflation. As of August 2024, the U.S. annual inflation rate was 2.5%.As of now, many high-yield savings accounts still are outpacing inflation.RELATED STORY | Fed chair plans to drop interest rates as 'inflation has declined significantly'According to NerdWallet, Ally bank's high-yield savings account has remained at 4.
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