3 Reasons to Open a High-Yield Savings Account

There’s never a wrong time to start making more money, especially now Inflation Still painful and unreliable capital market performance. For millions of account holders with savings in the bank, there is a reliable way to start earning significant amounts of money quickly By opening a High Yield Savings Account — or by moving a current savings account to a higher-yielding account — account holders can earn exponentially more interest than they’re used to earning with their traditional savings.

While the most well-known benefit of this type of account is earning extra money, they actually are beneficial There are various reasons and we will detail these three below.

You can easily explore your local high-yield savings options here to see how much you can make or use the table below to get started.

3 Reasons to Open a High-Yield Savings Account

Here are three top reasons why you should open a high-yield savings account now.

You can start earning significantly more interest

The average annual percentage rate (APR) on a regular savings account is currently around 0.33%. But a high-yield savings account can offer rates of 3.50% or higher. What does that look like at the end of the year? If you have $5,000 in a savings account, you can earn about $16.50 after twelve months. But with a high-yield account, you will have acquired The same amount is $175. The more interest you earn, the higher your bottom line will be. With compound interest, you earn interest on both the principal amount you deposit and the interest earned.

It’s easy to get started. You can plug in your zip code here to find some local banks and credit unions that offer high-yield savings accounts or explore your options through the table below.

Accounts are less risky

Unlike investing in the stock market or other items prone to market volatility, high-yield savings accounts are relatively low-risk. Yes, rates can change and the amount you currently earn may decrease in the future. But it could also rise if the Fed continues to raise rates. Regardless of interest rate activity, however, your money will only grow and your principal won’t suffer (unless, of course, you withdraw from the account). Another feature: This account is FDIC-insured Up to $250,000, so you don’t have to worry about losing your money if something happens to the company you’re using.

They are easy to open

The thought of going to a bank to sit down and do paperwork can be daunting for many people. But high-yield savings accounts are easy to open and easy to use. There are both online banks and credit unions that service such accounts, as well as brick-and-mortar institutions that can help you get started in person. Many will even offer debit cards for account holders as they would any other traditional bank account. And you’ll be able to track your savings performance through a banking app right from your phone or tablet

Not sure how much you’ll earn from a high-yield savings account? You can easily explore your options – and possible interest rates – right here

Bottom line

During high inflation and High prices when shopping, many Americans are looking for any benefits they can get. High-yield savings accounts are a great option to pursue. They offer account holders a unique opportunity to earn significantly higher interest than a regular account. They are low-risk (and FDIC-insured) and easy to open due to the wide array of institutions, both online and in person. Explore your high-yield options through the table below and start making more money now