Many people choose to bank with their local community bank or credit union, but another option exists. A best high-yield savings account is an easy way to make money on your money. When you open a high-yield account, you can earn interest on all of your checking and savings balances, plus you have access to free ATMs worldwide.
One of the main perks of a high-yield checking account is the interest rate you earn on your deposits. Unlike a traditional savings account, which might only earn you 0.01% per year, some high-yielding accounts offer rates as high as 1% or more—and these rates usually come with no monthly fees or minimum balance requirements.
You can even find checking accounts that offer 2% APYs (annual percentage yields) without any strings attached! But be sure to do your research before signing up for an account: not all banks offer such high returns and some have certain requirements that may disqualify them from being right for you.
Knowing your money is in a safe place
You may not think about it, but your money is safer in a bank than it would be sitting in your living room. Sure, you could put your cash under the mattress or in a safe. But if those were stolen or broken into, that would be the end of it.
Banks are insured by the government so that if one does go bankrupt due to bad decisions made by management and employees (which has happened before), then all of its customers will be protected from losing their money by law—and that’s just one example of how governments regulate banks.
Easy and simple to sign up
You’ll first notice that it’s easy and simple to sign up. You don’t need to go to the bank, wait in line and pay a fee, file any paperwork or even fill out an application form for your high-yield account. Instead, you must visit their website using your desktop computer or mobile device, click the “sign up now” button, and follow the instructions.
If you are already a customer, then they’ll simply give you another option at this point in order to confirm that it’s really you making this request and not someone else pretending they’re you (it happens). After completing these steps, they will send an activation email about how much money has been added to each account type so that users can begin withdrawing funds immediately!
No need to pay monthly fees
High Yield Accounts are free of all the common fees that you pay in a typical bank account. Lantern by SoFi says, “Online banks often charge no or very minimal monthly fees on savings accounts.”
- You don’t need to pay monthly fees, annual fees, setup fees, maintenance fees or even ATM fees (which can sometimes be $3 per transaction).
- With High Yield Accounts, there won’t be any overdraft charges either!
In conclusion, high-yielding accounts offer many advantages to the investor. First, the account holder can earn interest on their deposited funds and benefit from the stability of a bank account. Furthermore, no monthly fees are associated with this type of account; therefore, it is perfect for those who have limited funds or would like to save money without any additional charges.