However, like with any other type of bank account, you also want to make sure that there are few, if any, maintenance fees (to avoid cutting into your interest earnings).įDIC or NCUA insurance is also a must, which protects your money if your bank or credit union should fail (bankruptcy or insolvency). Given that the main selling point of a high-yield savings account is its higher interest rate, a high APY should be the main factor to consider when shopping around. Receive instant approval or, in some cases, wait for confirmation from the bank via email or regular mail.Agree to terms and conditions after reviewing check for fees and specifics on rates.Enter personal information, such as full name, address, driver’s license or government-issued ID, phone number and where your deposits will come from (e.g., transfers from other accounts, direct deposits, mobile deposits) as requested.Apply online, by phone or, if the bank has brick-and-mortar branches, in person.These limitations are not the same for every high-yield savings account and some online and traditional banks do allow you to order checks or request a debit card to allow easier access to your funds. This type of account also limits the ways in which you can access your money, so you’re less likely to stray from your savings goals. How does a high-yield savings account work?īy offering a higher interest rate than traditional savings accounts, high-yield savings accounts help you grow your money in a shorter span of time. When it comes to saving, a higher interest rate means a better return on your money. High-yield savings accounts, also known as high-interest rate savings accounts, are bank accounts that earn you higher APY than a traditional savings account. Read on to learn about high-yield savings accounts, from how they work to which features to look for when choosing an account. High-yield savings accounts are relatively easy to understand, but they share many characteristics with other bank products. Why Synchrony Bank didn’t make the cut: The APY Synchrony offers is on par with what’s currently available elsewhere, but other financial institutions are offering higher APYs. There’s no minimum deposit to open the account, and no monthly fees are charged. Synchrony Bank, an online-only bank, offers a solid high-yield savings option.
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