This is a hypothetical comparison and calculation of lost interest earnings if US households held their checking account balances in a 5.00% APY checking account rather than a checking account earning the national average rate of .08% APY.
This calculation assumes the following: 1. The number of US households in 2023 is 131,434,000 (US Census Bureau); 2. The percentage of US households with a checking account in 2022 is 94.6% (Federal Reserve, 2022 Survey of Consumer Finance); 3. The average checking account balance is $16,891.02 (Federal Reserve, 2022 Survey of Consumer Finance); 4. The average checking account interest rate as of May 20, 2024 is .08% (FDIC); and 5. Both interest rates stay the same for 12 months with the full balance remaining in the account.
For illustrative purposes only. Assumptions have limitations and the calculation should not be taken as factual. Evergreen does not guarantee the accuracy of the calculations shown.