High-Yield Savings Accounts: Why They Outshine Regular Savings Accounts
TLDR: Move your savings to a high-yield savings account. Let’s talk about why -
When saving money, choosing the right type of savings account can make a “significant” difference in maximizing your returns. While regular savings accounts (Wells Fargo’s, Bank of America’s etc.) have been the staple choice, high-yield savings accounts have gained (deserved) popularity because of their ability to offer a higher interest rate. In this article, we will explore why high-yield savings accounts are better than regular savings accounts, why you should consider them for your financial goals and some options for you to explore.
Before that, let’s review APY, a term that might come up fairly frequently. APY stands for Annual Percentage Yield and is simply a way to measure how much interest you will gain in a year. i.e. if you put in $100 in an account with 5% APY at the end of the year, you will have $105. The interesting part is that APY considers the compounding of interest, meaning you earn interest on top of interest. So the more money you add monthly increases the base for your interest to be calculated. Now let’s talk why high-yield savings:
- Superior Interest Rates: The most important reason high-yield savings accounts have gained attention is their significantly higher interest…
