High yield savings accounts
What is covered
Best high yield savings accounts
The amount of online and in person banks that offer credit cards, savings accounts, and every other option is unthinkable. Trust me, as I spent hours looking at different options for my first credit card, savings account and bank. These reviews will go over some of the beginner friendly high yield savings accounts I used and how they work. There are also some tips as to what I would do differently.
Best High Yield Savings Accounts
A high yield savings account can be a great place to park your money and let it grow worry free. Most banks offer about 0.50% interest on savings accounts, while these accounts can offer upwards of 5%. As always, a few qualifications to look for include...
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FDIC ensured - The most important qualification is making sure the account is FDIC ensured. This means every dollar is secured up until $250,000.
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High APY (Annual % Yield) - Generally anything above 4% is good for these types of accounts and finding that is not difficult.
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Minimum Deposit - Some accounts require a minimum deposit of anything from $1 to thousands.
Fees
NO account fees
APY
$0 - 4,999 = 0.25%
$5,000 and up = 5.00%
Minimum Balance
$100
Building an emergency fund:
Emergency funds are useful to everyone and protect you from falling into debt when life unexpectedly hits. Think: blown engine, a vet bill or even losing a job. Experts recommend having 3-6 months of living expenses in your fund. And because the money needs to be available at last notice but might sit around for quite a while, a high-interest savings account is one of the best accounts you can, and should, use.
Why online banks?
The two most important factors for virtually every bank-shopper are APYs and fees (They can take the most from your account over time). And, as it is now, online banks are offering fantastic APYs (as much as 11x the average APY). Plus, they also have virtually inexistent fees.