A savings account earns 4 percent. if the saver is in a 28 percent ax bracket, the after-tax savings rate of return would be 2.88%.
1.0 - 0.28 = 0.72; 0.04 ×0.72 = .0288 = 2.88%
A savings account is a government-guaranteed financial product that allows you to grow your money. The best savings accounts have a high annualized rate of return (APY). The higher your APY, the more money you can make over time. Save 50% or more for the biggest career and life opportunities (learn more about magic savings rate breakpoints here).
As a rule of thumb, save at least 20-25% of your after-tax income, not other goals. Save 50% or more for the biggest chance in your career and life (learn more about Magic Savings Rate breakpoints here).
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