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A high-yield savings account is essentially the same as a standard savings account, but it pays a much higher yield on your money. The national average yield on savings accounts is 0.57 percent APY.
Best uses for a high-yield savings account. A high-yield account might be a good option for anyone looking to save money for a large purchase, a short-term or mid-range financial goal, or cash you ...
FDIC or NCUA Insurance. High-yield savings accounts also offer more security in the form of insurance. The Federal Deposit Insurance Corporation (FDIC) insures your deposits up to $250,000 per ...
High yield savings accounts, sometimes abbreviated to HYSA, are a type of savings account with higher interest than normal savings accounts. These accounts typically earn 10 times more in interest than a normal savings account. HYSAs can be a good option for short-term investing. [2] [3]
As of October 2024, the average dividend yield of S&P 500 companies was only 1.25%, reports Schwab. By contrast, a lot of high-yield savings accounts continue to offer rates at or around 4%.
A savings account — especially a high-yield account — might be better if you prefer easy access to your cash, plan to make regular deposits or want to take advantage of rising interest rates.
Here’s a great way to think about high-yield savings accounts: They’re different from regular savings accounts in the same way that sports cars perform better than regular sedans.
Some high-yield savings accounts require a high opening deposit to earn the highest advertised APY. For example, Brio Direct requires a $5,000 minimum balance to earn its high APY. Understand the ...