High Yield Savings Account #

TLDR: High yield savings accounts are an OK way to hold onto cash for the future. While the yield is lower than storing in other places, this kind of account guarantees liquidity for your money.

A high yield savings account is a savings account by a bank that is designed to give you a higher yield than other savings accounts. This type of account is typically offered by banks with low overhead, such as online-only banks.

While a typical savings account may offer you only 0.06% - 0.1% interest, a high yield savings account can offer you a significantly higher yield around 0.5%.¹

To illustrate this difference, if one were to save $1000 in both accounts over 10 years, you’d make $6 in a normal account vs $50 in a high yield account!

Examples #

Some good examples of high yield savings accounts include:

• Ally Bank
• Goldman Sachs
• Alliant

The key to getting the best interest rate is to shop around!

Further Reading #

• https://www.nerdwallet.com/best/banking/high-yield-online-savings-accounts
• https://www.investopedia.com/articles/pf/09/high-yield-savings-account.asp