Introduction To High-Yield Savings Accounts
Saving money is an important aspect of financial planning, but simply putting money into a regular savings account is not enough these days. With inflation on the rise, your money could actually be losing value if it’s not earning a decent interest rate. That’s where high-yield savings accounts come into play.
What Are High-Yield Savings Accounts?
High-yield savings accounts are essentially savings accounts that offer higher interest rates compared to traditional savings accounts. These accounts are typically offered by online banks, and they’re a great option for those looking to grow their savings while keeping their money safe.
Why Are High-Yield Savings Accounts Safe?
One of the main reasons high-yield savings accounts are considered safe is because they are FDIC-insured. This means that your deposits are insured up to $250,000 per account holder, per bank, in case the bank fails. This ensures that your money is safe even in the unlikely event of a bank failure.
Popular High-Yield Savings Accounts
There are several online banks that offer high-yield savings accounts, and three of the most popular ones are:
Marcus by Goldman Sachs
Marcus by Goldman Sachs offers a high-yield savings account with an APY (Annual Percentage Yield) of 3.75%, which is higher than the national average. The account requires no minimum deposit and has no monthly fees. Marcus also offers a variety of other financial products, including personal loans and certificates of deposit.
Barclays US offers a high-yield savings account with an APY of 3.6%. The account also requires no minimum deposit and has no monthly fees. Barclays US also offers a variety of credit cards, including rewards cards and balance transfer cards.
Capital One 360
Capital One 360 offers a high-yield savings account with an APY of 3.40%. The account requires no minimum deposit and has no monthly fees. Capital One 360 also offers a variety of other financial products, including checking accounts and credit cards.
Other Offerings and Benefits
In addition to high interest rates, these online banks also offer convenient online banking services, such as mobile apps and online account management. This makes it easy for you to manage your savings from anywhere, at any time.
In conclusion, high-yield savings accounts are a safe and convenient way to grow your savings. With FDIC insurance and higher interest rates, online banks like Marcus, Barclays US, and Capital One 360 are great options to consider.