High-yield savings accounts are generally offered by online banks and credit unions. The nationwide average is 0.09% APY and high-yield savings pay more than that.
Below, you can find out whether or not chasing the highest savings rate is worth it.
 |
 |
Know How to Compare Rates
If the rate on your current account is close to the national average and consider switching to a high-yield account as long as you are comfortable with online banking.
However if the APY rate you are earning is below 1% you should not switch.
Experts recommend that you multiply your current rate by your savings balance in order calculate your annual interest in order to determine whether or not you switch.
Is It Worth It?
The pro of course is maximizing your interest earnings. However competitive rates can change over time and usually follow trends.
If the Federal Reserve rate drops it impacts banks across the U.S. This means the bank with the highest rate might not stay that way for long.
Saving money and maintaining an account takes a lot of effort. Regular contributions to your savings account, is crucial when it comes to growing your money.
Understand Your Future Financial Goals
When it comes to savings rates you need to think about your long term financial plans.
The funds in your saving account are best planned for 5 years. This includes your emergency fund, which cover three to six months’ worth of living costs.
If you have a lot in your savings account to cover these bases, then consider investing what you can into towards your retirement fund.
Author’s Verdict
Whenever you choose to open a new savings account, the rate is important, but so are other features. Be sure to read up on the fees, minimum balances required to earn interest so there are no unwanted surprises.
Hopefully the above information helps you understand whether or not you should pursue a higher yield savings account.
Also be sure to check out our own lists of bank promotions and CD tables!
| PROMOTIONAL LINK | OFFER | REVIEW |
| Chase Private Client | $3,000 Cash | Review |
| U.S. Bank Business Checking | $900 Cash | Review |
| Chase Business Complete Checking® | $300 or $500 Cash | Review |
| KeyBank Key Smart Checking® | $300 Cash | Review |
| Truist One Checking | $400 Cash | Review |
| Chase Total Checking® | $300 Cash | Review |
| Chase College CheckingSM | $100 Cash | Review |
| Chase High School CheckingSM | $100 Cash | Review |
| J.P. Morgan Self-Directed Investing | Up to $700 Cash | Review |
| Chase Secure BankingSM | $100 Cash | Review |
| SoFi Checking and Savings Account | $325 Cash | Review |
| Huntington Bank Unlimited Plus Business Checking | $1,000 Cash | Review |
| Huntington Bank Unlimited Business Checking | $400 Cash | Review |
| Huntington Bank Business Checking 100 | $100 Cash | Review |
| Fifth Third Bank Checking | $400 Cash | Review |
| Axos Basic Business Checking | $400 Cash | Review |
| Axos Business Interest Checking | $400 Cash | Review |
| Axos Bank Business Premium Savings | $375 Cash | Review |
Leave a Reply