If you're looking for a safe place to park your cash, then a high-yield savings account may be the perfect solution. With interest rates at historically low levels, bank savings accounts typically yield just 0.33% now, so it may not make sense to put any of your money there. Instead, consider Fidelity's high yield savings account, which offers a much higher rate of return.
Fidelity is a trusted financial institution that has been around for over 70 years. Their high yield savings account is federally insured, so you can rest assured that your money is safe. Plus, they offer competitive interest rates that are much higher than what you would get from a traditional bank savings account.
To find the best high-yield savings account for you, review NerdWallet's list of the best overall, federally insured high-rate accounts. Fidelity's high yield savings account is consistently ranked among the top options.
In addition to their high yield savings account, Fidelity also offers a cash management account. This type of account is similar to a checking or savings account, with additional features like a debit card and check-writing capabilities. Cash management accounts are cash accounts offered by a financial institution other than a bank or credit union – often from a broker. Fidelity's cash management account offers many of the same benefits as their high yield savings account, but with added flexibility.
This is where to safely keep the cash you'll need within five years. If you're saving for a short-term goal, like a down payment on a house or a vacation, then a high-yield savings account is a great option. It offers a higher rate of return than a traditional savings account, but with the same level of safety and security.
Rising interest rates throughout 2022 led to historically high losses for fixed-income investors, but better days for bonds may be on the horizon. Fidelity's high yield savings account is a great way to take advantage of rising interest rates. As rates continue to climb, you'll earn even more on your deposits.
Fidelity offers a variety of mutual funds with low fees and boasts a long history of success in the industry. If you're looking to invest your money for the long-term, then Fidelity's investment options are worth considering. They offer a wide variety of funds to choose from, including index funds, actively managed funds, and target-date funds.
Some online banks offer free checking, no overdraft fees, ATM fee rebates, and savings accounts that actually pay interest! If you're looking to simplify your finances, then an online bank may be the way to go. Many online banks offer competitive interest rates on their savings accounts, making them a great option for short-term savings goals.
Money market funds are low-risk investments for parking your cash, earning interest while providing very good liquidity. If you're looking for a low-risk way to earn a higher rate of return on your savings, then a money market fund may be a good option. Fidelity offers several money market funds to choose from, each with its own unique set of features and benefits.
In conclusion, if you're looking for a safe place to park your cash, then Fidelity's high yield savings account is a great option. With competitive interest rates, federal insurance, and a long history of success in the industry, Fidelity is a trusted financial institution that you can count on. Whether you're saving for a short-term goal or investing for the long-term, Fidelity has a wide variety of options to choose from.