Four Reasons to Stick with Your High-Yield Savings Account Even if Rates aren’t as High as Before
When the Federal Reserve dropped interest rates to near zero this year, many people were disappointed to see that their high-yield savings accounts’ rates weren’t exempted.
While the decision was made in an effort to offset the effects of the worsening economy, you’re probably disappointed to have your saving strategy upended by significantly lower returns. Don’t take out your savings from your account just yet though.
Here are four reasons to keep your money in a high-yield savings account despite rates being lower than before.
Quick Access
The great thing about keeping your money in a high-yield savings account is that you still get to have quick access to it. You can set it up in a way to connect with your checking account and withdraw part of or all of your money should you want to.
Depending on which bank you opened your account in, you can also transfer funds easily and almost instantly across other accounts you’ve linked to your savings account.
Safe and Insured
Of course, it’s a given that your cash is safer in a bank than being kept in your house. You can rest assured that your money stays intact whatever happens to you or your home.
There’s also the fact that the government gives you the added security of insuring bank accounts up to $250,000 per depositor per bank. If you have a joint account, the total insured amount goes up to $500,000.
Still Worth the Interest
While rates aren’t not as good as they were last year, keeping your money in a high-yield savings account would still earn you interest. What’s more, rates would still be better than other saving vehicles without the added risk.
You’ll notice that the high-yield savings accounts across banks are paying rates between 0.5% to 0.8%, which are still up to 80 times more than you’ll get when you open a savings account at a traditional bank.
Full Automation
Another great thing about high-yield savings accounts is that many of them offer you the perk of automating your savings. Most exclusively online banks would allow you to make automatic transfers and create ‘sub-savings accounts’ within a single account.
This makes it easier for you to reach your saving goals, especially if you’re building funds for multiple objectives like buying a home, paying for a wedding, or other big ticket purchases.
More in Business & Finance
-
`
Branded Content: A Genuine Way to Connect With Your Audience
Have you ever binge-watched a series on Netflix, only to later realize that the beverage everyone’s sipping on is that brand...
November 3, 2023 -
`
Southwest Airlines Tackles Passenger and Labor Challenges
Southwest Airlines, a prominent player in the aviation industry, has found itself at a crossroads, facing a combination of passenger dissatisfaction...
October 28, 2023 -
`
Everything You Need to Know About Blended Interest Rates
Hou ever blended a smoothie and thought, “How on Earth do my strawberries, spinach, and protein powder come together to taste...
October 17, 2023 -
`
The Osbournes ‘Relaunch’ Podcast After 5 Year Break
If you were glued to your TV in the early 2000s, there is no way you missed the hilarious, raucous, and...
October 10, 2023 -
`
Tesla in China: Back-to-Back Price Drops, But No Sales Jump?
As temperatures soared in the summer of 2023, Tesla seemed to be heating things up in the Chinese market too. A...
October 6, 2023 -
`
Navigating Red Flags in the Workplace
In the journey of our careers, it’s not uncommon to encounter red flags in our jobs that signal potential issues or...
September 30, 2023 -
`
Top 6 Best Housing Options for Older Adults
As we grow old, our physical and mental health needs change. In turn, this means that we require more assistance from...
September 21, 2023 -
`
Why Hollywood Is Private Equity’s New Money Machine
Hollywood has always been known as a glamorous industry, what with its big budgets, huge stars, and even bigger box office...
September 14, 2023 -
`
How Amazon Sellers Can Thrive in Their eCommerce Ventures
The past year has seen exponential growth in eCommerce transactions due to the unprecedented times the world finds itself in. Amazon...
September 10, 2023
You must be logged in to post a comment Login