Do you have money stashed away in a savings account or some type of Emergency fund? If yes, then good for you! If, instead, the answer is no – then add this item to your to-do list. Having some money saved in a safe and easily accessible location is an important part of your overall financial wellbeing.
That said – if you’re not currently using a High-Yield Savings Account (HYSA) to store your funds, then you just might be leaving money on the table.
What’s a HYSA?
Essentially, these accounts are savings accounts that offer a higher rate of interest than your average savings account available via a local bank. A high yield account typically offers an interest rate of anywhere around 0.8-1% (or higher), whereas the average savings account interest rate is usually 0.09%. That is a MAJOR difference! You could be earning up to 10x more with a HYSA.
What’s the “downside”?
There really isn’t one! High yield accounts are often offered by online-only banks that don’t have to tie up any fees for physical locations, bank tellers, and other kinds of expensive overhead. Instead, these online-only companies pass the savings on to you in the form of a higher rate of interest.
Are these accounts safe?
As long as the institution providing the HYSA is FDIC insured, you’re protected. Make sure to check on their website or ask in advance.
What about ATM access?
Every institution is different, but we recommend opening your HYSA with an institution that has a partnership with local ATMs in your area or else has an alternative way to allow you to access your cash if need be.
How can you open one?
It’s simple – go online! The one we most like to use is through Chime (which currently offers an annual percentage rate of 1%). You can log on and quickly set up an account today and make arrangements for your next paycheck to be deposited into your new account directly. With Chime, you get a Chime Visa Debit Card and an FDIC insured deposit account that can be managed entirely from your smartphone, plus a Savings Account that helps you save money without thinking about it.
So, go on now! What are you waiting for? It is time you made your money work a little harder for you by earning some additional interest! Set up a high yield savings account today and begin feeling much more confident about what your money is doing for you behind the scenes.
*Note, this post may contain affiliate links though every opinion we share is completely and entirely our own.
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