What is “Savoring” and How Can it Help You Build Wealth?
A high yield savings account works like a regular savings account except it pays a higher interest rate. This allows you to earn more on your money. Check out our article from last year for more information about HYSAs.
In a “traditional” savings account, your $1000 is likely earning an annual percentage yield (APY) of .33%. That comes to be about 30 pennies every month, or about $3 per year. In a “high-yield” savings account, you’ll have a much higher APY (right now they are earning over 3%-4%). Your $1000 could be earning anywhere from $34 - 40 per year for every $1,000. That’s 10x the earnings!
It takes just a few minutes to open a high-yield savings account and all you need to provide is your basic personal information and link your checking account.
Many banks and financial institutions offer high yield savings accounts. The key is to do your research and make sure the bank or financial institution is a good fit for you personally. You also want to make sure that the bank or financial institution is FDIC insured.
Let’s take a look at two of the many offers that are available right now:
SoFi is currently offering a 3.75% APY on savings accounts when you sign-up for direct deposit. With a $0 minimum and $0 minimum opening deposit.
Discover is currently offering a 3.30% APY on savings accounts. Discover also offers their account with no minimum deposit and no fees.
Barclays is currently offering a 3.80% annual percentage yield (APY). Barclays also offers their account with no minimum deposit and no fees.
Marcus is currently offering a 3.50% annual percentage yield. Marcus also offers their account with no minimum deposit and no fees.
Right now, Ally is offering a 3.40% annual percentage yield (APY) on their savings account. Ally also offers their account with no minimum deposit and no fees.
CitBank is offering a 4.05%annual percentage yield (APY). The minimum to open an account is $100. However CIT doesn’t charge any monthly fees.