Don’t settle for low interest rates when increasing your hard-earned savings. (iStock)
If you’ve been eyeing savings accounts, you may have noticed that they have different interest rates. If you want to grow your hard-earned money as quickly as possible, set your sights on high-yield savings accounts that offer very high interest rates.
While migrating from a traditional savings account may put you on hold, a high-yield savings account is considerably less risky and will allow you to earn more on interest. Here’s what you should know:
Should I open a high yield savings account?
If you want to earn more interest but don’t plan to withdraw anytime soon, you should consider switching to a higher-yielding savings account.
As the name suggests, a high yield savings account is a savings account with a much higher interest rate than a standard savings account. Some high yield accounts offer interest rates up to 20 to 25 times the national average currently set by the FDIC. at just 0.05%.
What is the annual interest rate for $1,000 in a savings account?
For example, let’s say you deposit $1,000 into a High Yield Savings Account with an annual yield of 1.20% (APY is the amount of interest you’ll receive in a year if you don’t add or withdraw any additional funds). At the end of the 12 months, he will accrue interest of $12 if he does not make any additional contributions. If APY had the same funds in his traditional savings account at 0.05%, he would earn only 50 cents after a year.
If you want to save even more cash, we recommend opening a high-yield savings account. Leave it to a high-yield savings account. Please open one today.
As an online marketplace, Credible will tell you the minimum balance requirement, APY, and whether the account is available face-to-face, online-only, or both.
How to find the best high yield savings account
You can find the best high yield savings account for you by following these steps:
- Compare high-yield savings rates
- maximize your savings
Compare high-yield savings rates
Rates can vary greatly between high-yield savings account providers, so take your time comparing options. Look for accounts with little or no administration fees and FDIC insurance in case your bank fails.
Credible helps you find high-yield savings bank account providers and find interest rates that increase your savings. Check out the options currently available, from each bank’s minimum balance requirements to his APY.
Customer experience is also an important factor, so read online reviews for customer feedback and check the bank’s rating on the Better Business Bureau (BBB).
What is the difference between a high yield savings account and a traditional savings account?
maximize your savings
Recommendations for monthly savings vary, but one general rule of thumb is to follow the 50/30/20 budget rule. This rule separates after-tax income into three categories. 20% on what you want, and on savings and debt.
To consistently meet your savings goals, consider setting up a direct deposit with your employer so that a portion of your salary always goes directly into your savings account.
When it comes to earning interest on your hard-earned money, let your high-yield savings account do the heavy lifting. Open a high-yield savings account today and start collecting cash.
Consider this before opening a high yield savings account
You can’t get rich by hoarding money in a high-yield savings account, but this relatively low-risk savings vehicle can help you get a little extra cash to use for debt, vacation financing, or emergency savings. will help you earn
And if you prefer online banking, a high-yield savings account is the best option. Many financial institutions that offer high yield savings accounts are online only. Online banking often offers low interest rates because there are no overhead charges (which are common with brick-and-mortar banks).
Credible helps guide you through the process of opening a high-yield savings account through an online bank. Follow Credible’s steps to open a high-yield savings account and save more money.
Before applying for a high-yield savings account, there are some drawbacks to consider. First and foremost, banks can change the interest rate on your account at any time. (The same goes for savings accounts.) Rate increases and decreases often occur when the Federal Reserve changes the Federal Funds Rate.
4 things you can do to save money within minutes
Also, many high-yield savings accounts only allow a limited number of withdrawals (sometimes once a month) before incurring a fee. In many cases, a minimum account balance must be maintained to avoid monthly maintenance fees, and in some cases a large initial deposit is required. (Minimum deposits of $10,000 are not uncommon).
Still, all things considered, it’s far better to keep money in a high-yield savings account than to cram it under a regular checking account or mattress.
other ways to get money
In an ideal world, everyone would be piling up their savings, but unfortunately, especially in the current economic crisis, that’s just not the case. (As of August 2020, 13.6 million American workers are unemployed, according to the Bureau of Labor Statistics.)
If you’re struggling to make ends meet, taking out a personal loan can help you weather the storm. To compare personal loan quotes from multiple lenders, visit Credible now if interest rates start at his 4.99% and loans range from $1,000 to $100,000.
Top reasons to take a personal loan
If you need to shoulder your credit card debt immediately, consider purchasing a credit card with 0% annual interest referral rewards. Take advantage of multiple card offers simultaneously via Credible.
