What Is a High-Yield Savings Account?

Reason To Sell Your Structured Settlement Payments  What Is a High-Yield Savings Account? When compared with traditional savings accounts, high-yield savings accounts allow you to earn significantly more interest on your How Do High-Yield Savings Accounts Work? High-yield savings accounts can be accessed through online-only banks or credit unions, which have lower operating costs than traditional banks, enabling them to offer higher interest rates. These accounts typically require a minimum deposit of $100, but fee-free options are available through some banks. A high-yield savings account may be right for you, if ...

1. You want to grow an emergency fund
2. You are saving for a large purchase
3. You want to save excess income

High-Yield Savings Accounts at a Glance Benefits:

• High interest rates
• Compound interest
• Access to cash
• Easy transfers

Risks:

• Inflation risk
• Teaser rates
• Balance caps

What to Look For in a High-Yield Savings Account While researching your options, consider the account's minimum balance and minimum deposits, your options for making deposits, and how you'll access your money in the account.  Also keep in mind any applicable fees on the account, its interest rate and how that interest rate is compounded. PRO TIP: The rates of high-yield savings accounts change over time. If your account's interest rate drops, it may be worth moving your money to a different account or an alternative savings option.