If you are saving money in a traditional bank savings account, the amount of interest your money is compounding year-over-year is probably 1% or less. Did you know that a high-yield savings account has the potential to double or even triple the amount of interest you are making on that money? Now you do!
Savings accounts are great for emergency funds. Emergency funds are important so that you and your family are prepared for the unexpected. You should always have some money tucked away for a rainy day that you can readily access, but that doesn’t mean the money can’t work for you while it’s being tucked away. That’s where the high-yield savings account comes in.
Traditional banks often provide you with the open to open a savings account when you request a checking account. Many people keep little to nothing in that account and see little to no growth as a result of that plus the fact that a traditional savings account isn’t meant to grow your money. But a high-yield savings account can and with so many online banking options now, it’s easy to move your money from one account to the next. Check out this high-yield savings account option with Ally Bank.
What high-yield savings account do you like to use or do you plan on opening now that you know more about it?