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Best High Yields Savings Account You Should Know

Nuelson Penuel Sunday, July 2, 2023 Finance

 

What is Savings Account?

A savings account is a type of bank account that allows individuals to deposit and store their money while earning interest on those funds. It is a safe and secure way to hold money and typically offers a lower risk compared to other investment options. Savings accounts are offered by banks and credit unions, and they provide a place for individuals to save money for various purposes, such as emergencies, future expenses, or long-term goals. They are a common tool for individuals to build an emergency fund, save for a down payment on a home, or accumulate money for retirement. What then is high yield savings account?

High Yields Savings Account

A high yield savings account, also known as a high interest savings account, is a type of savings account that offers a higher interest rate compared to traditional savings accounts. These accounts are typically offered by online banks or financial institutions that aim to attract customers by providing higher returns on their savings. Here are some key features of high yield savings accounts: 1. Higher interest rates: High yield savings accounts typically offer interest rates that are substantially higher than those of traditional savings accounts. While the exact rates may vary depending on market conditions and the financial institution, they often exceed the national average for savings account interest rates. 2. Online banking: High yield savings accounts are commonly offered by online banks, which means account management is primarily conducted through online platforms or mobile apps. These accounts often don't have physical branches, allowing for lower overhead costs and enabling the financial institution to offer higher interest rates. 3. No or low fees: Many high yield savings accounts have little to no monthly maintenance or account fees. However, it is important to review the terms and conditions of the specific account, as some banks may have certain requirements or charges associated with the account. 4. FDIC or NCUA insurance: Just like traditional savings accounts, high yield savings accounts offered by banks are typically insured by the FDIC, while those offered by credit unions are insured by the NCUA. This insurance ensures the safety of the deposited funds up to the limits specified by the respective organizations. 5. Limited services: High yield savings accounts may have fewer features compared to traditional brick-and-mortar bank accounts. They often prioritize the ability to earn high interest rates over additional services, such as ATM access or extensive customer support. High yield savings accounts can be a beneficial option for individuals who want to maximize their savings by earning a higher return on their funds. However, it's important to consider factors like accessibility, customer support, and any minimum balance requirements before choosing a specific high yield savings account.

Key Features of Savings High Yields Account

Here are some key features of savings accounts: 1. Interest: Savings accounts typically earn interest on the deposited funds. The interest rate is often expressed as an annual percentage yield (APY), which determines how much interest the account will earn over a year. The interest is calculated based on the account balance and the specified APY. 2. Liquidity: Savings accounts offer liquidity, meaning individuals can access their funds whenever they need them. Unlike some investment accounts, there are generally no penalties or restrictions for withdrawing money from a savings account. However, some banks may impose certain withdrawal limits or fees, so it's important to check the terms and conditions of the specific account. 3. Deposit and withdrawal: Individuals can deposit money into a savings account by cash, check, or electronic transfer. Withdrawals can be made through various methods, including ATM withdrawals, online transfers, or in-branch transactions. 4. Safety: Savings accounts offered by banks and credit unions are typically insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). This insurance protects the account holder's deposits up to a certain limit (currently $250,000 per depositor, per insured bank).

High Yields Savings Account

The following are some examples of savings accounts that have high yield: 1. Ally Bank: Ally offers a high-yield savings account with a competitive APY (annual percentage yield) that consistently ranks among the top in the industry. As of October 2021, their APY is 0.50%. They have no minimum balance requirements and no monthly fees, making it accessible for all types of savers. Ally also provides a user-friendly online platform that allows you to easily manage your account, transfer funds, and set up automatic savings plans. Their customer service is highly regarded and available 24/7 via phone, chat, or email. 2. CIT Bank: CIT Bank offers a high-yield savings account with a competitive APY. As of October 2021, their APY is 0.45%. There are no monthly fees and no minimum balance requirements. CIT Bank also provides a mobile banking app for convenient account access and management on the go. Their customer service is accessible via phone and online chat during weekdays. 3. Discover Bank: Discover offers a high-yield savings account with a competitive APY. As of October 2021, their APY is 0.40%. There are no monthly fees and no minimum balance requirements. Discover Bank is known for its excellent customer service, available 24/7 via phone or online chat. They also provide a user-friendly online banking platform and a mobile app for easy account management. 4. Marcus by Goldman Sachs: Marcus by Goldman Sachs offers a high-yield savings account with a competitive APY. As of October 2021, their APY is 0.50%. There are no monthly fees and no minimum balance requirements. Marcus offers flexible access to funds, allowing you to deposit and withdraw money from your savings account easily. They provide a mobile app for on-the-go account management and their customer service is accessible via phone or secure message. 5. American Express National Bank: American Express offers a high-yield savings account with a competitive APY. As of October 2021, their APY is 0.40%. There are no monthly fees and no minimum balance requirements. American Express provides a mobile app for convenient account access and management. Their customer service is highly regarded and available 24/7 via phone or secure message.

Conclusion

It's important to note that while savings accounts offer a secure way to store money and earn interest, the interest rates tend to be lower compared to other investment options like stocks or bonds. However, savings accounts are often recommended for short-term savings or as a place to hold emergency funds due to their low risk and liquidity. When comparing high-yield savings accounts, it's essential to consider factors such as the APY, fees, minimum balance requirements, customer service, and online/mobile banking features that align with your financial needs and preferences.

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