According to a new MoneyRates.com analysis, low interest rates may have cost American depositors more than $120 billion in purchasing power last year. As the Federal Reserve’s response to a recovering economy, low interest rates are intended to encourage borrowing, and in turn, stimulate the economy. However, inflation of the USD has outpaced interest rates. What does this mean for you as a depositor? Is this doing more harm than good? This new infographic from MoneyRates.com titled “The Fed vs. Your Savings” puts things into perspective and breaks down the details. Take a look, and see what you can do to cope with a low interest rate.
Source: Money Rates