Savings Rate Rises to 3.6%

Government data show that U.S. consumers chose to put more money in savings in April rather than spend it. Although incomes rose 0.4%, many households avoided spending the money and instead added it to savings accounts. As a result, the savings rate rose to 3.6%.

Many people are concerned about whether or not the economy is recovering fast enough. But many economist believe the economy is on track and expect it to grow.

In addition to an increase in incomes, some people could ultimately increase their savings if they take advantage of low mortgage rates and refinance home loans. Mortgage rates are averaging 4.78% for 30-year loans and 4.21% on 15-year loans, the lowest level in almost 20 years.

While savings rates are pretty low right now, it still makes sense to put away as much money as possible for your future. Building savings can give you a financial cushion in case of a job layoff or other emergency. Keep in mind that the unemployment rate is at 9.9%, and many people are still having a tough time finding jobs. It’s important to stash away as much money as possible even if you don’t earn much interest on savings accounts.

Shop for savings accounts, money markets, and certificates of deposit.

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