High-yield savings accounts come with all the bells and whistles that make even the most extravagant Americans want to save their money. That’s because they offer a much higher interest rate than what can be found with traditional savings accounts. If you’ve read our other articles, then, you’re likely well-versed on how high-yield savings accounts help you secure your financial future. The only question left to answer now is, how do I open a high-yield savings account?
Opening a high-yield savings account should be a well-researched process focusing on what a high-yield account is, and that ensures that you end up with the best possible interest rates. That means you’ll need to shop around for a financial institution offering the best rates and returns, following which you go through a simple application process, which, if approved, the account will be opened.
Opening A high-yield Savings Account
Opening a high-yield savings account is easy, but going with the first banking institution or credit union you come across isn’t always the best idea. The golden rule to opening the best possible high-yield savings account is to compare financial institutions and find which offers the best terms for your personal needs, which may mean excluding your primary bank from the equation. The idea is to objectively look for an institution offering the highest interest rates, low minimum deposits (if required), reasonable transaction fees, and considerable withdrawal limits. You’ll also want to check whether the interest rate is only received if you maintain a certain amount of funds in the account. While you’re at it, make sure the institution has reasonable account requirements and doesn’t make you jump through hoops to qualify. Looking at current and past customer reviews can give you a good idea of what your experience with them is likely to entail.
Once you’re satisfied that you’re getting the best deal, it’s time to complete your application. Generally, you’ll need to provide your personal details, submit the necessary identification documentation, and wait for your application to be approved. Once you fund your account, you’ll be one step closer to achieving your financial goals.
Is Now A Good Time To Open An Account?
It’s always a great time to start saving, but in light of the recent global pandemic, the interest rates offered on high-yield savings accounts took a dip. Where in the past, the APY was around 1%, it has significantly dropped to around 0.5% or even lower, depending on the institution. Be that as it may, it’s still relatively higher than what you’d expect to receive with ordinary savings accounts. Plus, it certainly beats stashing your savings under a mattress!
With traditional saving methods off the table, you might be wondering if investing is a more feasible option. Well, the answer is yes and no. Yes, if you’re looking to tuck your money away for a long time. No, if you’d want to use the funds for future expenses or as an emergency fund since it’s easier to access from a high-yield savings account than an investment account.
Conclusion
Opening a high-yield savings account is a practical step to building a strong financial future for yourself. Applying for the account is easy enough, provided you pick the correct financial institution, which can be a bank, credit union, or online platform. Whichever route you decide to go with, make sure you conduct your due diligence to pick the best account with the best rates.
Here at Cashero, we offer a flexible high-yield savings account with an average APY of 5%. See what life can be like when your money is working for you.
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