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Following Apple’s savings account news, is now the right time to open an account?

Apple’s new savings account shows the benefits of opening an account in today’s rate environment.

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Apple fans got some welcome news this week when the tech giant announced the launch A new savings account With a 4.15% annual percentage yield (APY) and no fees. Goldman Sachs Savings Accounts will have no minimum deposit or minimum balance requirements, Dr. Apple.

“Savings helps our users get more value from their favorite Apple Card benefit — Daily Cash — and gives them an easy way to save money every day,” Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, said Monday. announcement

“Our mission is to create tools that help users live healthier financial lives and build Apple Card savings into Wallet by enabling them to spend, send and store daily cash directly and seamlessly — all from one place.”

Apple’s news comes amid a high-rate environment that has been a big boost for traditional deposit vehicles High Yield Savings Account And Certificate of Deposit (CD). With Apple’s involvement in the space, many are wondering if now is the right time to open an account.

Explore your high-yield savings options here now to see how much more you can earn

Is now the right time to open a high yield savings account?

Timing is everything, especially when it comes to financial products and services. That said, there are some compelling reasons to open a high-yield savings account now. Here are three:

The rate is significantly higher

Interest rate on a high-yield savings account That’s exponentially more than what you can do by keeping your money in a regular account. The interest rate on a traditional savings account is around 0.39% FDIC. but The rate of apples As shown, account holders can easily get rates in the 3.50% to 4.50% range or even higher. This may not seem like a huge jump on a percentage basis but when the math is complete account holders will make a lot more money by moving their funds into a high-yield account.

A $5,000 deposit in a regular account, for example, would be worth only $5,019.50 after 12 months (at a rate of 0.39%). Those same funds in a high-yield account with a 3.5% rate grew to $5,175.00 over the same period. And that’s at 3.50%. Apple and many other lenders are offering higher interest rates.

So shop for an account and start earning more money now.

Rates are subject to change

The only thing predictable in today’s economy is the unpredictability of everything. Yes, high-yield savings account rates are higher now but they may not be where they are. It is possible that they may flatten or even fall off. Interest rates on high yield savings accounts, Unlike CD, is adjustable and may rise or fall based on market conditions and other factors. Due to the nature of these types of accounts, it makes sense to act quickly to take advantage. You will increase your savings just by opening an account now and if the rates change in the future, you can earn at least a little extra by working at the right time.

These are a good way to increase your emergency savings

do you have one emergency fund? And if you do, You have saved enough?

A high-yield savings account can help on both fronts. You can better protect and enhance your policy by using this type of account as your emergency fund. A traditional savings account earns low interest and is readily available for withdrawals — two things that are not helpful in today’s economic climate. In contrast, many high-yield savings earn significantly higher interest (see above) and are generally available Online, thus reducing the temptation to easily tap your savings. Since these accounts are usually online (and the lending institution has more money to play with) you’ll also get lower fees, which can make your emergency savings even easier.

Bottom line

do you go with Apple’s new savings account or other lending institutions, no doubt Now is a great time to open a high-yield account. Rates are much better than most regular accounts, although they can change in the short term (hence why now is a good time to open an account). High-yield savings accounts can also help protect and grow your emergency savings, which is especially helpful in today’s economic climate.

Explore your high-yield savings options here now to see which lender is best for you

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