I got an email recently with this subject line from an online bank. The email had these details:

Can this really be true? YES

This bank’s savings account offers an interest rate of .95% (that is less than 1%), which given that the  average interest rate on a savings account nationally is about 0.06%, is actually 16x. Before you get too excited, $1,000 in a savings account earning 0.95% will earn about $10 per year, which is about 16X the $0.60 you would earn from the average savings account.

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.