If you’re like most people, chances are you have a savings account. Setting aside money for emergencies and future purchases is one of the first money lessons many of us learn growing up. But if your savings are in a regular savings account, you might miss it.
as its name suggests, is similar to In many ways. They earn interest based on the federal funds rate. You can also separate money that you should not touch for a while and money that you can use for your daily expenses.
But when it comes to, high yield accounts easily outperform regular accounts. In this article, we explore why you should consider switching to a high-yield savings account now.
Check current rates now See how much you can earn.
Reasons to switch from a savings account to a high-yield savings account
Whether you’re opening a savings account for the first time or looking for a new one, here are the reasons why you should consider a high-yield savings account now.
can earn a lot
The top reasons to switch to a high-yield savings account are:.
The average APY (Annual Yield) for fixed deposit accounts is currently 0.39%. FDICIn contrast, high-yield savings accounts offer APYs of around 3.5% to 4.5% (or more). This is a maximum of 12 times. Recently, the difference has increased by a factor of 15. Over time it can really add up.
“Most of my clients are used to getting a few dollars or cents in interest from their banks or credit unions, so the hundreds or thousands of interest they get now can make a big difference.” , Dana J. Menard, CFP, RLP, CEPA, CDAA, recently said.
To find the best high yield savings account for you, Check current rates here.
ensure better conditions
Many High Yield Savings Accounts Offered, without the overheads that brick-and-mortar banks do. These savings are often passed on to customers in the form of low (or no) fees and low (or zero) minimum balance requirements. This allows you to keep more money and earn more interest.
Swell Financial Founder and CFP Nick Covyeau said: “Smaller banks are taking a hit on deposits after the SVB collapse and are looking to attract new customers with more attractive high-yield savings options.”
Your funds are easily accessible
ofFor high-yield savings accounts, Or a short-term savings vehicle. Especially for emergency funds, it’s important to have access to funds whenever you need them.
Ryan McCarty, CFP and Lead Advisor, Castle Rock Investment Company, said: “So not only can you make money with cash just by keeping it in your account, but you can also use it for your daily expenses if you want. CD if you need to step on it and need money quickly.”
Ready to open a high yield savings account? Consider your options here.
“Overall, high-yield savings accounts are a great way for consumers to make more money while keeping their money safe and available,” McCarty said. “We strongly encourage consumers to consider opening one, especially for emergency funds or short-term savings goals.”
Tofor you i know Compared to Whichever you choose, you can rest assured that your savings will grow much faster than with a regular account.
“Your money is just there. It makes sense to spend more of it and make it work,” Covyo says.
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