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How the Federal Budget Deficit May Impact Your Savings Account

Posted by: RateAPY Bank Rates News
February 9th, 2010

Americans have been paying down their debts at an accelerated rate since mid-2008. They have also been increasing their personal savings. Meanwhile, the U.S. government has been going into debt at an accelerated rate. The net savings rate in the U.S. is now negative for the first time since the Great Depression.

According to, “Protecting Yourself from the Giant New Deficit,” a recent article in the Wall Street Journal, “Investors need to account for the burgeoning federal budget deficit as they save for retirement, college tuition, or homes.” The increased deficit could mean that the money in your savings account faces a frontal attack against inflation.

You can help protect your savings by increasing the amounts you are putting into money market accounts or certificates of deposit. Shop for the best interest rates online. Compare interest rates on money market accounts or certificates of deposit today.