A high yield savings account is a savings account that pays at a higher interest rate than a traditional savings account. Financial institutions and online banks are most companies that offer these. Opportunity for your money to grow, while being an FDIC insured account, per insured bank.
Today high yield savings account rates can range from 4% to 4.5%. The rates move up and down as needed, the rates are not locked in. Market conditions change and many factors can adjust the rates.
Each bank and financial institution have different requirements or possible monthly fees. There are a wide range of rules depending on the high yield savings account.
There are multiple benefits of high yield savings accounts:
- FDIC insured up to $250,000.
- Money grows faster than in a traditional savings account.
- Typically easily accessible
Factors to pay attention to:
- Interest rate
- Fees
- Minium balance requirements
- Restrictions on withdrawals
- Maximum balance at a certain rate
High yield savings accounts can help a person save money by letting it grow at a higher rate than a traditional savings account. Using these for an emergency fund helps me have the money continously growing and be reachable.
High yeild savings account does not work for you? check out T-Bills Vs. T-Notes Vs. T-Bonds, Roth IRA vs Traditional IRA: Understanding the Differences, What is a Certificate of Deposit (CD)?
Review Best Online Savings Accounts: May 2024 for the online savings accounts that I believe is the best.