Feeling financially insecure in the uncertain economic world of today? You’re not the first, and you certainly won’t be the last. Luckily for you, we’ve done a bit of research and have found a solution that could work in your favor.
High-yield savings accounts are a great tool to help you fight the rising costs of inflation while protecting the value of your hard-earned money. Does that sound too good to be true? Let’s break it down.
What are high-yield savings accounts?
High-yield savings accounts are different from traditional savings accounts because they have a higher interest rate, allowing your money to potentially grow even faster as it sits in your account.
The interest rate that high-yield savings accounts offer is referred to as APY, or otherwise known as your annual percentage yield. Essentially what this means is the higher your APY, the faster your money grows over time.
Can Your APY Change?
The APY offer you get when you sign up may change as the Federal Reserve alters its benchmark interest rate. Though the fluctuating interest rate may cause some hesitation, you should still note that a high-yield savings account may still earn more than a normal savings account. Not only does your money earn a potentially better return, but you will still be able to access your cash when you need it- just like a normal savings account.
Now may be the time to consider how a high-yield savings account could benefit you. If you’ve decided this type of savings account is the right route for you, it’s important to know that not all accounts offer the same perks.. Some high-yield savings accounts are tax-free, while others offer tax advantages or other bonuses.
Take the time to review the different perks of various high-yield savings accounts so you could make the right decision for a better financial future.