When was the last time you took a look at your checking and saving account options? Are your accounts working for you? Are you making the most on your money? A high-yield checking or savings account may be the perfect option for you to maximize your money.
How Do High-Yield Checking Accounts Work?
High-yield checking accounts work the same way as standard checking accounts:
- Open an account at a financial institution, either online or in person. A minimum deposit may be required.
- Learn the terms of the account. Some accounts may require that you maintain a minimum balance to earn interest and avoid account maintenance fees.
- Earn interest on your balance. High-yield accounts feature competitive variable interest rates. They give you an opportunity to earn more for your money so that your funds grow faster.
- Withdraw or deposit money as needed. Depending on your financial institution, you may be charged a fee if you do not meet minimum transaction requirements.
- Keep track of your account through online or mailed monthly statements. Some financial institutions require a specific number of logins to your account each month.
What Is A High-Yield Savings Account?
A high-yield savings account is a secure place to set aside money for emergencies, unexpected expenses or long-term goals.
You can withdraw funds if you need to and deposit money into your account at any time. Your account will receive a competitive annual percent yield, which contributes to the growth of your money.
Whether you are stashing away money for a rainy day or your next big purchase, a high-yield account can be a great option for reaching your goals.
How Do I Choose A High-Yield Account?
Not all accounts are the same and not all financial institutions offer a high-yield checking account. You can research accounts to get started. Once you feel comfortable with your high-yield checking account, you can explore high-yield savings accounts, as well.
Content courtesy of our partners GreenPath Financial Wellness.