5% of $1k is $50/year. and, generally speaking $1k in emergency savings is only the first tier savings goal. the next priority is to save 3-6 months of expenses depending on perceived job stability, which is where interest income starts to offset the cost of some cheaper utilities or a mid tier subscription add-on.
it's not really meant to provide some passive income so much as as it is an incentive to parking the savings somewhere. because the current interest rates on brick and mortar savings are butt cheeks. like 0.1% type crap.
5% of $1k is $50/year. and, generally speaking $1k in emergency savings is only the first tier savings goal. the next priority is to save 3-6 months of expenses depending on perceived job stability, which is where interest income starts to offset the cost of some cheaper utilities or a mid tier subscription add-on.
it's not really meant to provide some passive income so much as as it is an incentive to parking the savings somewhere. because the current interest rates on brick and mortar savings are butt cheeks. like 0.1% type crap.