Peace of mind. Early retirement. Your first house. That dream vacation. Savings help out with some of the best things in life. So it’s important to get as much from your savings as possible. That’s why you should make your money go further with a high yield savings account.
If you’re going to put your hard-earned money into a savings account, you want to make sure you’re getting the most out of it.
But did you know that a high yield savings account could generate ten times more interest than a regular savings account? Traditional ‘brick-and-mortar’ banks typically offer a low annual percentage yield (APY). For example, in the USA, the national average is just 0.06%. A high yield savings account not only offers many times that, it often comes with other perks too – like zero maintenance fees or a low minimum balance.
Sure, saving with your regular bank is comfortable and convenient. You might be worried about long application processes, huge fees, and difficulties withdrawing your money when you need it. But these fears rarely come to life and the high APYs of high yield savings accounts are well-worth exploring.
Here are some tips when looking for a high yield savings account.
There’s a reason traditional brick-and-mortar banks offer such low interest rates. The cost of maintaining a physical bank filled with staff means they have high overheads. In this digital age, however, there are lots of online banks and financial services that have cut out these costs altogether. This is why online banking offers better rates on their high yield savings account than your local bank. They also usually offer lower minimum balances, lower initial deposit requirements, and even zero maintenance fees.
Speaking of minimum balances, initial deposits, and maintenance fees, the next step for getting a high yield savings account is comparing what’s out there. Interest rates are important, yes. But jumping at the highest interest rate before checking the fine print could be a disaster for your savings. A high yield savings account with 0.8% APY could have huge maintenance fees, but if you compare it with other banks you could find one with a slightly lower APY but zero fees.
Write Down Your ‘Must Haves’
Are you putting aside an emergency fund that you’ll need quick access to? Your high yield savings account must have a speedy withdrawal process. Do you plan on leaving your savings in place for years to come? Look for a high yield savings account that offers better interest for long-term savings. Assessing your ‘must haves’ is all about knowing what you’re saving and why. Switching to a high yield savings account could transform your savings for the better – but to make the most of it, don’t go into the process blind.
If you’re asking yourself, ‘how can I get more from my savings?’, you could be a few clicks away from the answer. High interest rates, low fees, and easy online banking make moving your money to a high yield savings account an attractive prospect. And remember – shop around, do your homework, and assess your needs.