Everyone needs a High Yield Savings Account, everyone. If you are serious about growing your savings, then you need to put your money into a high yield savings account where compound interest can make your money grow. Here are the top reasons you need a high yield savings account.
Why you need a high yield savings account
Higher interest rates. Most brick and mortar banks offer laughable interest rates, sometimes as low as 0.20% for a standard savings account. The top high yield savings account rates are often 5-10 times higher than the national average. If you don’t have a high yield savings account, you are leaving money on the table.
High yield CD rates. The good thing about high yield savings accounts is that their high interest rates roll over into other banking features as well, including high CD rates. Here are the top high yield CD rates from nationally available banks.
Few fees. Most high yield savings accounts have little to no fees, and have low minimum balance requirements (most are as low as $1.00).
Best place to park emergency savings. Everyone needs an emergency savings account, and a high yield savings account is the best place to put your emergency savings account – that way you will earn more money from the interest of your deposits.
Earn more money while waiting to invest. I like to invest my money in the stock market and in other equities, but brokerage accounts don’t typically pay very good interest. While I’m waiting for the best deal, I like my cash to earn higher interest than what the best discount brokerages pay.
Make it automatic. The top high yield savings accounts allow customers to automate their savings through direct deposit, ACH transaction, automatic deposits, and other automatic transactions.
Online bill pay. Online bill pay is a free feature with almost every online high yield savings account. Online bill pay makes it easier to pay your bills on time and will save you time and money. Many brick and mortar banks charge for this feature.
Easy access to your money. Most high yield savings accounts offer ATM access at a wide variety of locations, and many offer free AM access. Most local banks have limited ATM locations and charge higher rates. If you need to transfer money, your cash is never more than a couple days away.
As you can see, there are plenty of reasons why you need a high yield savings account.
As a side note, I recommend doing your due diligence and researching banks before signing up for a new accounts. Read the fine print and be aware of any possible fees before opening a new high yield savings account.