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Life Kit

Make your savings work harder

Life Kit

NPR

Health & Fitness, Self-improvement, Kids & Family, Education, Business

4.33.9K Ratings

🗓️ 1 July 2025

⏱️ 17 minutes

🧾️ Download transcript

Summary

Typical savings account interest rates can earn you pennies. In this episode, you'll learn about other high-interest savings options to earn more in interest and protect your savings against inflation.

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Transcript

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0:00.0

The House of Representatives has approved a White House request to claw back two years of previously approved funding for public media.

0:08.1

The recisions package now moves on to the Senate.

0:11.2

This move poses a serious threat to local stations and public media as we know it.

0:17.1

Please take a stand for public media today at goacpr.org. Thank you.

0:23.8

You're listening to LifeKit from NPR.

0:29.6

Hey everybody, it's Mariel.

0:32.2

If you have money in a savings account, I want you to check something.

0:36.0

Log into your account online and see how much

0:38.5

interest you're making a year. It'll say, you know, 0.5% APY annual percentage yield. Now, I want you to

0:47.2

think about another number, 2.1%. That's the inflation rate in the U.S. as of April. It's actually down. It was much higher in the past few years.

0:57.0

But still, the difference between those two percentages,

1:00.0

that's how much the money you have in savings is losing value every year.

1:05.0

When we put money in a savings account, we like to think of it as safe.

1:09.0

But with inflation, your money isn't safe.

1:12.6

Its value is eroding a little bit at a time. Arzu Rezvani covers personal finance and housing for NPR.

1:19.9

She says there's this inertia that happens with our savings.

1:23.3

I have talked to a lot of people about this. And what happens really is that they started a checking or savings account when they were really young.

1:31.5

And then they've never really bothered to check back in to see, oh, what is my savings account making for me?

1:38.6

And look, switching savings accounts might seem annoying. You're sitting down, taking a look at the various websites, setting up new systems,

1:46.0

transferring money. It seems like a little bit of a hassle, but I think it's worth it. Also,

1:51.5

even when inflation isn't that high, if you could be making more money on your money without risking it,

1:57.8

why not do that? On this episode of Life Kit, we walk you through some of your

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