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high yield savings accounts are everywhere these days but the interest rates are quite low not only that savings account interest is actually taxable interest from a savings account is actually taxed at the marginal rate here are the marginal rates in their tax brackets so letamp;#39;s say my salary is 50 000 a year my marginal rate is actually 22 that means if i generated 100 of interest that 22 of those dollars would be going to the government instead of buying merch from my favorite bands like weezer and claro so some interest is better than none and even though i missed out on weezer merch at least i got this merch instead which is pretty great