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How to Get a Better Rate on a High-Yield Savings Account

Senior man looking at his savings on tablet
If you’re looking for a good rate on a high-yield savings account, consider using an online bank

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If you are looking for a safe way to both protect and grow your money a High Yield Savings Account Can help. Applications for these accounts have increased significantly in recent months with recent interest rate hikes courtesy of the Federal Reserve, which is now creating A great time to open a high-yield account.

High-yield savings accounts work the same way as traditional savings accounts except that they come with a lot more Higher Annual Percentage Yield (APY). Current rates on regular savings accounts are around 0.33% to 0.35% per annum. Interest rates for high yield savings accounts Rapidly higher – falls between 3.50% to 4.50% or more depending on the lender and other factors. For just a $5,000 deposit that’s the difference between earning $175.00 versus $16.50 in twelve months.

But how do you find the highest rate for a high yield savings account? This is what we will explain below. You can start researching rates to see how much more you could earn now here or through the table below

How to Get a Better Rate on a High-Yield Savings Account

Here are two of the most reliable ways to secure a higher rate for a high-yield savings account:

Shop around

If you have the time and patience — and are committed to getting the highest interest rates out there — shop around for an account before you sign on the dotted line. There are many banks and credit unions that will be happy to do your business so don’t open an account with the first lender that offers you a favorable rate. Look around and see if you can find something superior. If not, you can always revert to the initial offer, although you should be aware that high-yield account rates fluctuate and may not be the same every day. That said, nobody knows for sure where the rate environment is going so you may see higher rates in the future.

Either way, do your homework and look around before committing to an organization. And don’t forget to check for any maintenance fees or other penalties that could potentially eat into the interest your account should be earning. A high-interest rate account with expensive fees may not be as valuable as an account with a slightly lower interest rate without a large penalty.

Start exploring your high-yield savings account options online now!

Consider an online bank

Because of the lower costs involved in opening and maintaining an online banking institution, these types of banks typically offer higher interest rates on high-yield savings accounts than banks with physical locations. This isn’t always the case, but it’s something to keep in mind when you’re searching for the highest rates out there. Online banking institutions typically offer higher rates and lower fees than banks with physical locations (in fact, some well-known banks don’t even offer high-yield options).

There are two things to note about online high-yield savings accounts, though. You may not have easy access to an ATM to deposit or withdraw from your account, so calculate how much you can comfortably avoid using before funding the account. Also, since these are online, you usually don’t have personal resources to help if you have a problem with your account.

If these factors don’t bother you and you’re willing to go the online route, you’ll likely secure a better rate than pursuing an account at a physical location.

Other considerations

Have more questions about a high-yield savings account? Check out the resources below to learn more.

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