Prudent American households today are expected to save money, maintaining an emergency fund and siphoning away income for retirement.
The reality is quite different. According to the GoBankingRates database, the current average savings account's annual percentage yield is just 0.11%.
As of January, the national unemployment rate was 6.6%, and the median price of existing U.S. homes, according to ecreditdaily.com, had risen by 10.7% to $188,900.
Savers don't get much help today, but a new survey by GoBakingRates found that some cities may provide a better opportunity to grow their savings than others, thanks to higher yields, lower taxes, more jobs with higher incomes and less expensive homes.
It scored the 100 largest U.S. cities by population in the following areas: average savings account rate, sales tax, unemployment rate, median household income and median home price. Each criterion was weighted equally, and scores in each category were combined to calculate final rankings.
Informa Research Services compiled savings account interest rates from the GoBankingRates interest rate database.
"Even the most frugal family will struggle to grow a savings fund if they can't get a decent job, earn a sufficient income or afford to pay taxes," Casey Bond of GoBankingRates, said in a statement.
"These rankings show that if Americans want to stop living paycheck to paycheck and start saving money, they might have to move to a city with greater opportunity."
Following are the 10 best cities for saving money this year, followed by the 10 worst:
10. Fort Worth, Texas
Average Savings Account Rate: 0.07% APY
Sales Tax: 8.25%
Unemployment Rate: 5.5%
Median Household Income: $56,691
Median Home Value: $130,100
9. Plano, Texas
Average Savings Account Rate: 0.10% APY
Sales Tax: 8.25%
Unemployment Rate: 5.5%
Median Household Income: $80,184
Median Home Value: $222,600
7. Arlington, Texas (tie)
Average Savings Account Rate: 0.07% APY
Sales Tax: 8%
Unemployment Rate: 5.3%
Median Household Income: $56,691
Median Home Value: $130,100
7. Garland, Texas (tie)
Average Savings Account Rate: 0.09% APY
Sales Tax: 8.25%
Unemployment Rate: 5.5%
Median Household Income: $50,198
Median Home Value: $113,900
6. Lubbock, Texas
Average Savings Account Rate: 0.11% APY
Sales Tax: 8.25%
Unemployment Rate: 4.3%
Median Household Income: $45,171
Median Home Value: $90,100
5. Anchorage, Alaska
