The best place to open a high-yield savings account
Are you tired of your savings account earning a paltry interest rate? Then it's time to open a high-yield savings account. With a high-yield savings account, you can earn up to 12 times more interest on your money than you can with a traditional savings account. That means your savings grow faster, without any extra on your part beyond opening the account.
But with so many financial institutions out there, where should you open a high-yield savings account? In this article, we'll discuss the best place to do so and why.
Compare savings account options here to see how much more interest you could be earning.
The best place to open a high-yield savings account
There are several places you can open a high-yield savings account, from local and regional banks to credit unions. But arguably the best place is with an online bank. These banks offer many of the same features as traditional banks but with some added perks that make them especially worth considering.
Higher interest rates
Interest rates for regular savings accounts are currently around 0.42%, according to the FDIC. High-yield accounts, by contrast, offer between 4% and 5%, according to Bankrate data. And rates on the higher end of this range are typically offered by online banks.
Online banks don't have the overhead costs of physical branches, which allows them to offer higher interest rates on savings accounts. That means your money earns more, faster than it will in other savings accounts. Whether you're saving for a new car, a down payment on a home or a rainy day, earning higher interest rates can help you reach your goals sooner.
See today's current savings rates and start comparing your account options.
Low or no fees
Many traditional banks charge fees that eat into your earnings, such as maintenance and overdraft fees. Online banks, on the other hand, typically charge lower fees — or no fees at all. So, not only will you earn more interest, but you'll also get to keep more of that interest for yourself.
Convenience
Online banks offer 24/7 access to your account through their websites and mobile apps, making it easy to manage your money on the go. You can access your account from anywhere with an internet connection, which is much more convenient than visiting a physical bank branch and standing in long lines.
In addition, online banks offer free online bill pay services, mobile check deposit and easy transfers between accounts. And if you need to pull cash from your account, many online banks offer free ATM access at a wide variety of locations.
Ready to open a high-yield savings account? Check out top offerings here!
Safety and security
As with traditional banks, FDIC-insured online banks offer federal deposit insurance up to $250,000 per account per bank. This means your deposits are protected in the event the bank goes out of business (which is particularly valuable peace of mind in light of this year's bank failures).
Online banks also take precautions to safeguard your money through encryption technology, multi-factor authentication and other measures, working to keep your digital information safe and your account protected from unauthorized users.
The bottom line
When it comes to saving your hard-earned money, you want to get the best return possible. One of the best ways to do that is by opening a high-yield savings account at an online bank.
With higher interest rates, no monthly fees, easy accessibility and FDIC insurance, there's no reason not to open one. So consider making the switch today and start earning more for your hard-earned money!
