Are you looking for an account that pays more than the national average interest rate? A high-yield savings account is the perfect solution. High-yield savings accounts offer interest rate that are much higher than the national average for standard savings accounts. This means that you can get more money from the interest your savings earn. But what exactly is a high-yield savings account and how does it work? This article will explain everything you need to know about high-yield savings accounts.
In most ways, an online high-yield savings account is similar to a traditional savings account at a brick-and-mortar bank. However, you'll typically find that online high-yield savings accounts have higher interest rate and lower fees than traditional savings accounts. This is because online banks don't have the overhead costs associated with maintaining physical branches.
But many now offer savings accounts with annual percentage yields of 3.3% or more. While the benefits of moving money into a higher-paying account may seem obvious, it’s important to understand how a high-yield savings account works.