Advantages
DISAdvantages
SAVINGS ACCOUNTS
A High Yield Savings Account is a savings account that pays higher interest to help people reach their financial goals faster. Accounts with the highest interest rates are usually online banks that do not have to worry about overhead costs that brick and mortar banks do.
This type of investment would be smart for someone with a savings account at a big bank, someone looking to save for an upcoming purchase, or someone with a sizeable emergency fund.
One thing that will be mentioned a lot in this section is APY or Annual Percentage Yield. This is a calculation of your estimated interest earnings by factoring in interest rate and compounding interest.
ADVANTAGES
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A safe option that will give you a solid return on your money with higher interest rates and low risk
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Banks are FDIC insured which means your deposit accounts are insured up to $250,000 per depositor, for each account ownership category
DISADVANTAGES
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Must keep in mind that these interests rates can change if the Fed decides to change interest rates. This will decrease the return on your money.
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These accounts are federally regulated so you can only have 6 transactions per billing period. If you go over, there is a fee.
top savings accounts
