What to look for when opening a high-yield savings account

Savings can help you prepare for unexpected or impending financial goals — and you can Maximize your savings Over time with proper accounts.

If you’re still saving in a traditional bank account with near-zero interest rates, it might be time to upgrade to one. High Yield Savings Account. These accounts can help you add more money to your balance by earning interest.

and with Today’s competitive interest rates, it’s a better time than usual to start. According to Information from the FDICThe national average savings account rate (which includes many traditional savings accounts at major banks) is currently around 0.37% APY, while many high-yield savings accounts today offer close to or higher than 4% APY.

Before you start saving, you’ll want to make sure the savings account you choose best sets you up for success.

Explore the high yield savings interest rates available today.

3 things to look for in a high-yield savings account

As with any deposit account, the first thing you should do when considering a new high-yield savings account is make sure the bank you choose is FDIC-insured. This will protect you in case of bank failure (up to a limit) so you don’t have to worry about the safety of your money.

Next, look for these three account details to find and Open the right account for you.

A great interest rate

the largest Advantages of a high-yield savings account The interest you can earn on your balance — so one of the most important factors you should consider is what interest rate the account pays.

High-yield savings rates are variable, meaning the rate you open your account today will change over time and go up or down depending on changes in the federal interest rate. But if the account you choose has a competitive rate today, it has a good chance of remaining competitive among other banks over time.

Today, the best high-yield savings rates are around 4% APY or higher, with some even reaching 5% APY. Depending on how much money you deposit, that could be a high interest rate Big difference in your savings balance For a year or more.

Learn more about the best savings account rates available now.

There is no fee

Earning interest helps increase your savings balance, but if you choose an account with high potential fees, you can quickly begin to deplete your savings.

Common fees include charges for withdrawing an allotted number of funds per month, wire fees for outgoing or incoming transfers, paper statement fees, charges for keeping your account inactive, and more.

In some cases, your account may incur these fees but the bank will offer you options to waive them For example, choosing online-only statements is a common way to avoid potential paper statement fees.

Before you open a new account, read the account terms and conditions for a complete overview of potential fees and how to avoid them. You can often find this document on the bank’s website.

Low or no minimum balance requirements

Savings accounts help you protect an existing balance, but you can also use them to build savings from scratch.

If you don’t already have a lot of money in savings, check whether the high-yield savings account you choose has a minimum balance requirement. Some accounts may require you to deposit a minimum amount when opening, while others may require you to maintain that amount over time.

Even if you already have enough money saved to meet the minimum, this can be a problem later. Provide one if you need to lift a large chunk Unexpected expensesFor example, you don’t want to get stuck paying a fee for not maintaining the required minimum balance.

Bottom line

there Lots of high yield savings accounts There’s a market to choose from, but that doesn’t mean you’ll be overwhelmed with your options. Make sure the account covers these three criteria — a competitive interest rate, no fees that take away from your earnings, and no minimum requirements — as well as FDIC insurance.

Then, compare today’s best high-yield savings accounts and start saving today to kickstart your balance.