What is a High-Yield Savings Account?

Want a flexible savings account with higher-than-average interest rate? Meet the high-yield savings account! Let's explore the basics, the benefits and what to consider before you start saving.

What is a High-Yield Savings Account?

A high-yield savings account is like a regular savings account but it comes with higher interest rate. It provides a safe space for your money to grow often with more competitive interest rate on your deposits. It's also a risk-free option for your savings.

High-Yield Savings Accounts: The Benefits

• High Interest Rates: High-yield savings accounts offer a chance to earn more interest than regular savings accounts. Earn more so you can save more!
• Peace of Mind Security: High-yield accounts are backed by the Federal Deposit Insurance Corporation (FDIC).
• Flexibility: Unlike a certificate of deposit (CD), where your savings are locked to a term, high-yield savings accounts are more accessible. If you need access to your savings, a high-yield savings account may be the right choice.
• Short-term Goals: A high-yield savings account is a great option for short-term savings goals or for an emergency fund.
• Convenience: Manage your money anytime, anywhere online and watch your savings grow.

Things to Consider

• Rates can differ between banks and institutions. Be sure to shop around for the best rates. They are also not locked in —your rate can change anytime. If you want something with a set rate, consider a CD.
• There may be fees or deposit minimums. Familiarize yourself with the conditions before you sign up.
• Withdrawal Limits. Typically there are limits to how much or how often you can make a withdrawal from the account, so make sure that works for your budget.
• Make sure it's right for your goals. If you are looking for something for your long-term savings, a certificate of deposit (CD) may be a better option.

A high-yield savings account can be a great way to boost your savings game. It keeps your money safe and accessible but gives you a higher-than-average interest rate. If you have questions about setting goals and opening a savings account, a Personal Banker from FNBO would be happy to answer them. Give us a call today!