Compared to regular savings accounts, high-yield savings accounts let you grow your money quicker. In these uncertain economic times, a high-yield savings account could be a good place to store money safely while earning interest.
According to the Federal Deposit Insurance Corporation (FDIC), the typical savings account pays an annual percentage yield (APY) of just 0.37% as of April 2023. Notwithstanding this average, several respectable banks provide rates of 4% or more on high-yield savings accounts at the time of writing. Many of these savings accounts also have customer-friendly features like sophisticated mobile apps, included ATM cards and no monthly maintenance fees.
Whether you’re saving money for a rainy day or a down payment on a home, a high-yield savings account is a good choice. These accounts can also be a good place to store your tax refund if you just filed your taxes and are looking for a place to store the funds.
But it can be hard to figure out which high-yield savings account to open since offerings change frequently and interest rates fluctuate.