You’re probably earning less than 1 % in interest if you still have money in a traditional savings account that’s connected to your checking account. That’s a lot of coins on your hard-earned income. &nbsp,

I’ve allowed my money to go into a standard savings account for years because I thought it would be the simplest way to access it. I didn’t consider how saving would increase with higher interest rates. &nbsp,

O high-yield savings accounts is a much more enjoyable way to park your money, and I’m happy I found it. &nbsp,

I’ve been making more than 3 % interest on my balance since switching to a high-yield savings account with an online bank ( even above 4 % for a while ). Although it hasn’t made me wealthy, it has been the safest and simplest way to make some additional money. &nbsp,

Why are you sacrificing your savings for greater income?

It may seem like a lot to you to earn around 4 % APY on your pocketbook. Let’s do the algebra, though. &nbsp,

You’ll make one dollar after a year if you have$ 5, 000 in a traditional savings account with a 0.02 % APY. You’ll make an additional$ 200 after a year if you instead deposit$ 5,000 into a high-yield savings account with a 4 % APY. &nbsp,

Since the Federal Reserve has maintained its benchmark interest rate at an increased level, high-yield saving costs have been consistently strong for the past few years. However, because APYs are changing, they may change at any time. &nbsp,

Saving money in a high-yield saving account is not intended to be a quick fix for the rising cost of living or a long-term investment plan. It’s also a better place to store your money than a checking or a traditional savings accounts. &nbsp,

Read more about Struggling to Keep? Even with the tightest of finances, this professional advice you increase your savings.

What should I hear before switching saving accounts?

Take some time to think about moving your money from a brick-and-mortar banks to an online, high-yield saving account if you’re unsure about doing so. There are many reasons to change lenders. You’ll often discover a more enjoyable bill than your current one. &nbsp,

It doesn’t take long to change lenders. It only takes a few minutes to open a high-yield savings account, and it can only take a few days to transfer funds. &nbsp,

In the event of bank failure, FDIC-insured banks will protect your money, up to$ 250, 000 per account. You’ll still need to apply online security features like two-factor identification to protect your money and personal information, though. &nbsp,

I advise conducting research on banks and bill characteristics and considering which ones most affect you. Do you favor having access to an ATM so you can withdraw money from your savings accounts? Do you require particular software features to keep your financial goals organized? &nbsp,

Keep an eye out for monthly expenses. Your benefits will be impacted if you pay to keep an bill. &nbsp,

In the end, you don’t need to achieve the best possible discounts level. What’s crucial is that you’re content where your money is being saved. &nbsp,