Opening a high yield savings account? Make these 3 smart moves

Amid recent uncertainty Banking sector And Stubborn inflation, many Americans are looking for new ways to protect and grow their money. One of the most attractive ways to do this is in today’s high-rate environment High Yield Savings Account. These accounts offer significantly higher interest rates than traditional savings accounts, giving account holders a unique opportunity to grow their savings exponentially.

An interest rate for a regular savings account is currently around 0.33%, roughly, while a high-yield account can be 3.50% or more. In today’s economic climate, you’re essentially leaving money on the table by not having a high-yield savings account. That said, as with other financial products and services, it pays to do your research to secure the most value from this type of account.

Start by exploring your high-yield savings account options here to see how much more you can earn

3 moves to create smart high-yield savings accounts

Make sure to follow these three smart steps as you begin the high-yield savings account process

Shop around

Just like you don’t necessarily buy the first house you see or the first car you test drive, you shouldn’t automatically sign up with the first lender that will let you open a high-yield savings account. Instead, shop around to find the best option for your needs and goals. Look at what your current institutions are offering (if they have any) but also research competitors to see what kind of rates they are offering.

But don’t get too attached to interest rates, only. Read the fine print to see what kind of deposit you need to make (and keep) to get the promised interest rate. and review any terms, conditions, and fees or penalties that may affect your earnings. You can make more money in the long run with an account with a lower rate at a higher rate and more exorbitant fees

Start researching your high-yield savings account options online now

Consider an online bank

The main appeal of high-yield savings accounts is the interest rate (and Amount of money that can be earned because of that high rate). So strongly consider using an online bank or institution if you are committed to finding the highest rates out there. Because online lenders don’t have to deal with the costs of opening and maintaining a physical location they can typically offer higher interest rates than institutions with brick-and-mortar locations.

That said, you may prefer a bank where you can go and get help in person. Just be aware that these banks may not offer high interest rates like those online banks There are no right or wrong answers here. It all depends on the individual and what they are trying to achieve with this type of account. But if interest rates are a priority, consider using an online bank.

Keep an eye on rates

Once you’ve shopped around and found the right bank (whether it’s online or with a physical location), you can rest easy knowing your money is safe and growing. But don’t assume that it will automatically increase to the initial rate. Interest rates on high-yield savings accounts are variable and will react to market activity and other factors. This means your rate could go up from what it was when you opened the account, but it could also go down. So keep an eye on the rates to make sure your account is working for you as planned. If rates move in ways you don’t like, and you ultimately prefer the stability of a set interest rate, a Certificate of Deposit (CD) The account may be a better fit for you.

You can now explore your CD options here.

Bottom line

In an economic climate plagued by inflation and uneven stock market performance, a high-yield savings account offers an attractive way to protect and grow your money. To get the most value from this type of account you should first shop around to find the most applicable option for your goals and needs. If you’re committed to finding the highest interest rates out there, strongly consider opening a high-yield account with an online institution. Finally, keep an eye on interest rates because these accounts are variable and may go up or down based on what you think are market conditions.