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How to Open a High-Yield Savings Account

By opening a high-yield savings account you can start earning significantly more interest than if you left your money in a regular account.

PhotoAlto/Frederick Ciro

Saving money is always beneficial. If you can do so while earning interest, that’s a plus, especially in the current economic climate. when Inflation And Increase in interest rates Hitting things like home buying and mortgage refinancing, they’ve increased its appeal Certificate of Deposit (CD) and High Yield Savings Account.

CDs are paying interest rates in the 3% to 5% range High-yield accounts are offering rates between 3.50% and 4.50%, depending on the lender and other factors. Compare that to the average interest rate of about 0.33% that most current regular savings accounts carry, and it’s clear to see. Now is a great time to open a high-yield savings account.

So how do you get started – and how do you find the best interest rate for your money? That is what we will discuss in this article.

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

How to Open a High-Yield Savings Account

High-yield savings accounts are offered by both online lenders and banks with physical locations, giving you flexibility in opening an account. Here’s how to get started.

Shop for lenders and rates

As with many financial products and services, it pays to do your homework. You can do this by shopping around for lenders and rates before committing to a particular institution. There are many online lenders who will be happy with your business so don’t sign up for the first offer you get. You may be able to find better rates and better terms elsewhere.

To make the right comparison between lenders, make sure you shop around. So if you’re willing to put $5,000 into a high-yield account, make sure you get rates for that amount from the lenders you’re looking at. And watch the fine print and minimum deposit requirements, as fees and other penalties can eventually eat away at your potential interest. Now it’s easy to shop your local offers online or use the table below to see how much you could earn

Select the organization

Once you feel you’ve shopped around enough you’ll move on to choosing an organization. It may be easier to use the lender you are currently banking with as they may offer favorable rates and terms to keep your business. This will allow you to transfer an account you currently use (such as a regular savings account) to a higher-yielding account. That said, don’t feel compelled to use your current bank if you can make more money elsewhere.

Complete the application

The application to open a high-yield savings account is the same as you would fill out for most other accounts. So be prepared to have proper documentation available. This may include (but is not necessarily limited to):

  • The full name of the person on the account
  • Social Security Number of account holders
  • Address or addresses of account holders
  • Government-issued ID (a valid driver’s license or other state-issued identification)
  • Employment details (annual income, name of employer, etc.)

Account Funding

Depending on the institution you choose, you will have different options for funding the account. If you stay with your current bank, you can withdraw some funds from an existing account and use it to open a higher-yielding one. You can withdraw all funds from an account, close it, and then deposit all or some of the funds into a high-yield account. If you’re starting fresh with a new lender, you can fund the account with an electronic transfer from your existing bank or, depending on the new lender, you may be able to send a paper check to get started.

Explore your high-yield savings account options online now and start earning more interest

don’t forget

High-yield savings accounts are generally easy to open and manage. But don’t just set it and forget it. Monitor account performance by downloading the organization’s app for your phone and tablet. Keep in mind that interest rates can fluctuate. If your account is liable for a fee, make sure you’re being charged appropriately. And make sure your appropriate relatives are added to the account so they have access to the funds if you’re unavailable for any reason.

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