These can be good accounts if you’re saving for short-term goals, like a vacation or a new appliance. And checking accounts have no restrictions on the number of transactions you can make within a statement cycle. Unlike a savings account, checking accounts generally come with a debit card or check-writing capabilities. High-Yield Checking AccountĪ high-yield checking account could be an attractive place for your savings, especially if you want near-instant and unlimited access to your funds while earning interest. You’ll need to provide identification with your account application and make an opening deposit if required. High-yield savings accounts are available at many banks and credit unions. These accounts can pay 10 times or more than the national average savings account rate, which is 0.39% as of April 17, 2023, according to data from the Federal Deposit Insurance Corporation ( FDIC). The best high-yield savings accounts usually have a low minimum deposit requirement. Some banks and credit unions require a higher opening deposit to get a higher interest rate. But in exchange for less liquidity, you typically get a higher interest rate than you can earn with checking accounts.Ī high-yield savings account operates like a regular savings account, but the interest yields are generally higher. Many, if not most, savings accounts limit the number of transactions and withdrawals you can make per month to six. High-Yield Savings AccountĪ high-yield savings account is a good choice if you want to make sure your savings are somewhat accessible while earning interest. The following ideas can help you make a plan to save and maximize your interest earnings. Your savings strategy is yours to design. You may also choose to have multiple savings accounts for different goals. On the other hand, if you’re saving for a down payment on a house and know you won’t be buying a home anytime in the near future, you may consider an account with less liquidity and a higher interest rate. You may trade a higher rate for more liquidity in this case. You’ll want to keep your money in an account where it’s easy to access and where you won’t be penalized for making a withdrawal. Before opening an account for your savings, ask yourself a couple of questions:įor example, say you’re building your emergency fund and may need your funds on short notice.

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