Why you shouldn’t wait to get a high-yield savings account

When buying financial products or services, timing can be of the essence. If you buy a service too soon, you may end up paying for something you don’t need. And if you get it too late, you could be stuck with a higher bill than if you had worked earlier. Many people, for example, took advantage of record-low mortgage refinance rates in 2020 and dramatically reduced their monthly mortgage payments. Those who waited, however, saw a window of opportunity when the Fed raised interest rates significantly.

The recent activity has not been entirely negative, as it has significantly increased what account holders can earn at the bank. in particular, High Yield Savings Account Now offering interest rates many times higher than what you are used to earning through traditional savings accounts. These recent developments have many people thinking now is the right time to open a high-yield savings account. Or should they wait and see what happens?

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

Why you shouldn’t wait to get a high-yield savings account

Here are three top reasons why you shouldn’t delay opening a high-yield savings account.

You may already be losing money

Simply put: If your money is sitting in a regular savings account, you’re already losing money. At the time of writing the annual percentage rate (APR) on a savings account is around 0.33%. Compare that to the 3.50% to 4.50% you can make Potential earnings will be made With a current high-yield savings account and you’ll quickly realize you’re leaving money on the table while maintaining stability.

How much money are you losing by not acting now? enough Using a $5,000 deposit for comparison purposes, a traditional savings account at that 0.33% interest rate would earn $16.50 over twelve months. A high-yield savings account at 3.50% would earn $175 over the same period – more than 10 times the earnings of a regular account!

So don’t delay. Act now if you want to start earning more interest. You can open a high-yield savings account online today or use the table below to explore your options.

Interest rates are unpredictable

If there’s one thing consumers have learned about the economy in recent years, it’s that it’s unpredictable. Interest rates were at historic lows And then They weren’t. Home prices were at record highs And then They weren’t. One thing consumers can count on these days is unpredictability. So don’t wait to get a high-yield savings account in the hope that the interest rates on those accounts will increase even more. They may continue to increase, or they may stay the same, or they may decrease.

As mentioned above, timing is critical. But the longer you wait, the less time you’re giving yourself to earn interest at current rates. So open an account now, start growing your account (and earn compound interest, to boot) and hopefully the rates for these accounts will be higher. Don’t just wait for a perfect time because it may never happen.

They are easy to use and maintain

It can be tempting to put off big financial investments and decisions when you know there’s a pile of paperwork and maintenance issues to deal with first. But high yield savings accounts are very low maintenance. Many banks and credit unions will provide a debit card that you can use to access the account, the same way you use your other accounts. And the best ones usually come with no maintenance fees or minimum deposit and balance restrictions, making it easier for account holders to operate.

You may be able to transfer your current savings accounts to a higher-yielding account with your current lender, without visiting their physical location. If your bank doesn’t offer these options, consider shopping online instead There are many banks that will be happy to have your business and offer an attractive APR to get it. You can start researching your high-yield options now or check out some local options in the table below

Bottom line

With some financial products and services, it is advisable to wait for the best opportunities. With high-yield savings accounts and current interest rates, however, now may be the best time to act. Many regular savings account holders are losing money by not opening such accounts and should consider this now before interest rates change again. They’re easy to use and maintain. Many people shouldn’t wait to get a high-yield savings account.