New grads may be in for a rude awakening when it comes to the power of their paycheck for saving.
In a small recent survey from LendEdu.com, only 26 percent of college students correctly guessed that the average savings account interest rate is in the 0 percent to 1 percent bucket. To be specific, annual percentage yields on savings and money market accounts currently average 0.56 percent, according to Bankrate.com.
Forty-two percent in the survey think the typical consumer earns 1 percent to 3 percent on their money. Twenty-two percent thought it was 3 percent to 5 percent, 8 percent thought it was 5 to 7 percent, and a very optimistic 2 percent put the average at 7 percent or better.