Investing in High-Yield Savings Accounts - A Guide to Maximizing Your APY

When it comes to investing, one of the most important things to consider is the Annual Percentage Yield (APY). National brick-and-mortar banks generally pay lower interest rates than online banks. For example, Bank of America pays 0.01% to 0.04% APY on most checking accounts. Fortunately, there are options available to get better returns on your money.

Retail Forex broker FOREX.com is raising the APY on account balances between $10,000 and $50,000 to 0.50%. This APY is significantly higher than the national average for savings accounts. In addition, there are no fees, minimum deposit or minimum balance requirements, and same-day transfers under certain conditions.

Capital One and Bask Bank both offer high-yield savings accounts with an APY of 3.30% and 3.55%, respectively. This rate of return is far higher than the average APY for a traditional savings account, which Bankrate says is 0.83%. As with most financial products, it is important to compare the APY, fees, minimum deposit requirements, and other factors before making a decision.

Another option is a bump-up CD. Unlike a traditional CD which comes with a fixed APY for the length of the term, a bump-up CD lets you request an interest rate increase if rates rise during the term. This allows you to maximize your returns without exposing your money to the risks of the stock market.

Finally, a new product on the market is the “savings Account On Steroids”. This product compounds your deposits daily and offers an APY of 7%, making it one of the most attractive savings account options available.

In summary, when it comes to maximizing your APY, there are a variety of options available, from traditional brick-and-mortar banks to online high-yield savings accounts. It is important to compare the APY, fees, and other factors before making a decision.