The money you deposit in your savings account could be used by banks to lend money to other people at a higher interest rate 😱 When you deposit money in a savings account, you may get an interest rate from 0.01-0.5% depending on what bank and account you use. Banks then charge higher interest rates when they lend to people through loans, credit cards, and mortgages. 📈 These interest rates can range from 4% to 20%, depending on the borrower’s creditworthiness and the type of loan. This difference is the “net interest margin”. For example, if a bank pays 1% interest on savings accounts and charges 5% interest on loans, the net interest margin would be 4%. While this is great for banks, it means you may not be earning as much interest on your savings as you could be 😭 Knowing this, consider using a high-yield savings account for your savings to get higher interest, as well as diversify your money into investments like in index funds/ETFs and in real estate! 🏡 👉 If you want to start investing in real estate - we gotchu: You can start with our FREE class about How To Buy Your First Rental Property. We will go over: ✅ The Fundamentals of Real Estate Investing ✅ How much do you need to start investing? ✅ The Steps to Buying Your First Property Where: Link in bio! 🔗 Why: To create financial freedom for yourself! Follow @sharontseung to help you become financially free #personalfinance #money