Opening a high-yield savings account is one of the best ways to grow your money without risk.
Interest rates have been rising in 2022 and 2023, making high-yield savings accounts an attractive option for savers.
This article will explain what high-yield savings accounts are, their benefits, and where to find the best rates.
What Are High-Yield Savings Accounts?High-yield savings accounts work much like traditional savings accounts at a bank. You can deposit money and withdraw funds when needed.
The key difference is the interest rate.
While traditional savings accounts earn around 0.06% APY, high-yield accounts offer over 2% APY and some as high as 5% or more.
This allows your money to grow faster over time through the power of compound interest.
Benefits of High-Yield SavingsThere are several advantages to using a high-yield savings account:
- Higher interest rates mean your money grows faster. Even an extra 1% in interest can make a big difference over time.
- FDIC insured up to $250,000 per depositor, so your money is safe.
- Convenient access via online banking, ATMs, etc.
- No required minimum balances or monthly fees.
High-yield savings work well for building an emergency fund, saving for short-term goals, or parking cash you don't need immediately.
The liquidity and low risk make them ideal for conservative savers.
Where To Find The Top RatesThe highest yielding savings accounts today offer around 5% APY or more. Here are some top picks:
- BrioDirect - Up to 5.25% APY
- CIT Bank - Up to 5.05% APY
- Marcus by Goldman Sachs - Up to 4.75% APY
- Ally Bank - Up to 4.65% APY
Rates change frequently, so shop around. Online banks tend to offer the best deals as they have lower overhead costs.
Read the fine print to understand any account minimums or other requirements to earn the advertised APY.
Start Saving More With a High-Yield AccountOpening a high-yield savings account is an easy way to earn more interest and accelerate your savings.
Compare accounts to find the best rate for your needs. Automate transfers to steadily build your balance over time.
With interest rates on the rise, now is a great time to boost your savings.