[{"data":1,"prerenderedAt":3326},["Reactive",2],{"/":3},{"data":4,"headers":3300,"perPage":200,"total":3325},{"stories":5,"cv":3297,"rels":3298,"links":3299},[6,872,1728,2475],{"name":7,"created_at":8,"published_at":9,"updated_at":10,"id":11,"uuid":12,"content":13,"slug":863,"full_slug":864,"sort_by_date":106,"position":865,"tag_list":866,"is_startpage":45,"parent_id":867,"meta_data":106,"group_id":868,"first_published_at":869,"release_id":106,"lang":870,"path":106,"alternates":871,"default_full_slug":106,"translated_slugs":106},"How to Open a High-Yield Savings Account","2025-04-07T18:31:32.550Z","2025-12-26T13:45:15.116Z","2025-12-26T13:45:15.150Z",651798206,"46456cc2-f3d5-4c99-acc3-4c3c82644c0a",{"seo":14,"_uid":20,"body":21,"author":48,"category":859,"featured":45,"component":860,"canonicalTag":861,"_editable":862},{"_uid":15,"title":16,"plugin":17,"og_image":18,"og_title":18,"description":19,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"6e279110-4da0-48c0-8e96-3269c04f3ee5","How to Open a High-Yield Savings Account - Navient Marketplace","seo_metatags","","How to open a high-yield savings account in seven easy steps. Learn fees, terms, pros and cons & alternatives. Get the guide from start to finish.","24614723-3c23-4d4f-990b-c49a1b45edce",[22,52,834],{"id":23,"_uid":24,"image":25,"intro":26,"author":27,"classes":28,"category":18,"featured":45,"blogTitle":7,"component":46,"imageLink":47,"blendImage":45,"authorRoute":48,"publishedDate":49,"backgroundColor":50,"_editable":51},"blog-hero","79f5a035-fc41-41ad-92c1-be998deab658","//a.storyblok.com/f/110029/4096x2734/570c1496ba/how-to-open-a-high-yield-savings-account.svg","Here’s what you need to know, and how to open a high-yield savings account.","Curt Kirby",[29],{"_uid":30,"component":31,"titleColor":32,"dateClasses":33,"titleClasses":34,"authorClasses":35,"subtitleColor":36,"titleMaxWidth":37,"subtitleClasses":38,"dateMobileClasses":39,"titleMobileClasses":40,"authorMobileClasses":41,"featuredMobileClasses":42,"subtitleMobileClasses":43,"_editable":44},"5d8a3dfe-c0c7-415b-8e3d-2676a4998763","BlogHeroStyle","#470A68","text-subtitle-2 mt-7 accent--text text--darken-2","text-h4 mt-6 font-weight-bold blog-info-section","text-size-sub-1 mt-7 accent--text text--darken-4","#75478E","600","text-h6 mt-n6 blog-post-subtitle","text-size-caption mt-4 accent--text text--darken-2","text-size-button-3 font-weight-bold","text-size-sub-1 mt-4 accent--text text--darken-4","text-size-sub-1 accent--text","text-size-sub-1 mt-n9 pt-5","\u003C!--#storyblok#{\"name\": \"BlogHeroStyle\", \"space\": \"157494\", \"uid\": \"5d8a3dfe-c0c7-415b-8e3d-2676a4998763\", \"id\": \"651798206\"}-->",false,"BlogHero","/images/how-to-open-a-high-yield-savings-account.png","curt-kirby","Updated: April 27, 2023 ","#F6F2F7","\u003C!--#storyblok#{\"name\": \"BlogHero\", \"space\": \"157494\", \"uid\": \"79f5a035-fc41-41ad-92c1-be998deab658\", \"id\": \"651798206\"}-->",{"_uid":53,"bloks":54,"classes":830,"component":831,"mobileClasses":18,"containerContent":832,"_editable":833},"a524f7f9-d117-4e66-ad66-48bdef990dc1",[55],{"_uid":56,"bloks":57,"classes":18,"justify":776,"component":828,"mobileClasses":18,"_editable":829},"17e2f2ba-9fb3-4bb6-a5c2-63670f0193ce",[58,779],{"lg":59,"md":59,"sm":60,"_uid":61,"cols":60,"bloks":62,"alignSelf":776,"component":777,"_editable":778},"7","12","fb1f586b-34d2-4553-84a6-1c536ab78608",[63],{"_uid":64,"color":65,"classes":66,"content":18,"richText":67,"component":769,"mobileClasses":770,"enableRichText":771,"richTextMobile":772,"_editable":775},"bbe4297a-be79-46dd-9df2-7033f885ffea","#444444","blog-post-text blog-post-headers",{"type":68,"content":69},"doc",[70,85,92,118,130,151,172,181,191,198,208,229,238,259,268,275,284,305,314,335,366,375,382,391,411,420,427,436,443,452,459,468,560,569,654,663,672,679,686,695,702,709,718,725,746,755],{"type":71,"content":72},"paragraph",[73],{"text":74,"type":75,"marks":76},"Navient may receive compensation when you click on links associated with this Navient Marketplace. Navient is not being compensated for any application, quotation, or the purchase of any financial products.","text",[77,81],{"type":78,"attrs":79},"styled",{"class":80},"footer-text",{"type":82,"attrs":83},"textStyle",{"color":84},"#000000",{"type":71,"content":86},[87],{"text":88,"type":75,"marks":89},"With economists muttering about a recession and the stock market fluctuating wildly, it can be tempting to stick your savings under a mattress and wait for all to be over. But putting your money in a traditional savings account won’t actually prevent losses: because interest rates on those accounts are so low, your money won’t grow nearly enough to keep up with inflation. That means your hard-earned cash will slowly lose its value. The better way to protect your money is to put it to work. That’s where a high-yield savings account can help. ",[90],{"type":82,"attrs":91},{"color":84},{"type":71,"content":93},[94,99,113],{"text":95,"type":75,"marks":96},"Over the past few years, ",[97],{"type":82,"attrs":98},{"color":84},{"text":100,"type":75,"marks":101},"annual percentage yield",[102,109,111],{"type":103,"attrs":104},"link",{"href":105,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.investopedia.com/terms/a/apy.asp",null,"_blank","url",{"type":82,"attrs":110},{"color":106},{"type":112},"underline",{"text":114,"type":75,"marks":115}," (APY) rates on high-yield savings accounts have consistently risen, making now a great time to take advantage. A high-yield savings account is a type of deposit account that gives you easy access to your funds — while still letting you grow your savings at rates well above the national average. Here’s what you need to know, and how to open a high-yield savings account.",[116],{"type":82,"attrs":117},{"color":106},{"type":119,"attrs":120,"content":122},"heading",{"level":121},2,[123],{"text":124,"type":75,"marks":125},"What is a high-yield savings account? ",[126,128],{"type":127},"bold",{"type":82,"attrs":129},{"color":84},{"type":71,"content":131},[132,137,146],{"text":133,"type":75,"marks":134},"A high-yield savings account is similar to a traditional savings account, except it pays more in interest on the money deposited. Where a traditional savings account might pay a fraction of a percentage point in interest, current interest rates for top high-yield savings accounts ",[135],{"type":82,"attrs":136},{"color":84},{"text":138,"type":75,"marks":139},"are over 4.0%",[140,143,145],{"type":103,"attrs":141},{"href":142,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.cnbc.com/select/best-high-yield-savings-accounts/",{"type":82,"attrs":144},{"color":106},{"type":112},{"text":147,"type":75,"marks":148},". ",[149],{"type":82,"attrs":150},{"color":106},{"type":71,"content":152},[153,158,167],{"text":154,"type":75,"marks":155},"This is ",[156],{"type":82,"attrs":157},{"color":84},{"text":159,"type":75,"marks":160},"compound interest",[161,164,166],{"type":103,"attrs":162},{"href":163,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://money.usnews.com/investing/term/compound-interest",{"type":82,"attrs":165},{"color":106},{"type":112},{"text":168,"type":75,"marks":169},", which means your interest is added to your account balance, and the next interest calculation is made on the full amount. Compound interest is among the best ways to grow your money fast. In addition to having higher interest rates, high-yield accounts are also flexible, accessible, and low-risk. ",[170],{"type":82,"attrs":171},{"color":106},{"type":119,"attrs":173,"content":174},{"level":121},[175],{"text":176,"type":75,"marks":177},"How to open a high-yield savings account",[178,179],{"type":127},{"type":82,"attrs":180},{"color":84},{"type":119,"attrs":182,"content":184},{"level":183},3,[185],{"text":186,"type":75,"marks":187},"1. Compare the APY and features of different accounts",[188,189],{"type":127},{"type":82,"attrs":190},{"color":84},{"type":71,"content":192},[193],{"text":194,"type":75,"marks":195},"Your first step is to shop around and get a feel for what your options are. Here are a few of the most important things to consider when choosing a high-yield savings account. ",[196],{"type":82,"attrs":197},{"color":84},{"type":119,"attrs":199,"content":201},{"level":200},4,[202],{"text":203,"type":75,"marks":204},"APY",[205,206],{"type":127},{"type":82,"attrs":207},{"color":84},{"type":71,"content":209},[210,215,224],{"text":211,"type":75,"marks":212},"APY, or annual percentage yield, is a measure of the money you’ll make in interest each year. The APY on a high-yield savings account typically ranges from 1.0 to 4.5%, and is currently ",[213],{"type":82,"attrs":214},{"color":84},{"text":216,"type":75,"marks":217},"capped at about 5.0%",[218,221,223],{"type":103,"attrs":219},{"href":220,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.fdic.gov/resources/bankers/national-rates/index.html#footnote",{"type":82,"attrs":222},{"color":106},{"type":112},{"text":225,"type":75,"marks":226},". (Note that the best rates can be up to 20 to 25 times higher than the national average for standard savings accounts.)",[227],{"type":82,"attrs":228},{"color":106},{"type":119,"attrs":230,"content":231},{"level":200},[232],{"text":233,"type":75,"marks":234},"Fees",[235,236],{"type":127},{"type":82,"attrs":237},{"color":84},{"type":71,"content":239},[240,245,254],{"text":241,"type":75,"marks":242},"You should also make note of each financial institution’s fee schedule, which you can often find on their FAQs page and in specific account disclosures. Many banks charge overdraft fees, ATM fees, and fees for closing your account within the first 180 days. You may also face penalties for making more than ",[243],{"type":82,"attrs":244},{"color":84},{"text":246,"type":75,"marks":247},"six withdrawals per month",[248,251,253],{"type":103,"attrs":249},{"href":250,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.investopedia.com/articles/pf/09/high-yield-savings-account.asp",{"type":82,"attrs":252},{"color":106},{"type":112},{"text":255,"type":75,"marks":256},". (This is the withdrawal limit on high-yield savings accounts as mandated by federal law.) Many accounts also charge a monthly service fee or monthly maintenance fee just to keep them open. ",[257],{"type":82,"attrs":258},{"color":106},{"type":119,"attrs":260,"content":261},{"level":200},[262],{"text":263,"type":75,"marks":264},"Minimum balance requirements",[265,266],{"type":127},{"type":82,"attrs":267},{"color":84},{"type":71,"content":269},[270],{"text":271,"type":75,"marks":272},"In addition to fees, some banks have minimum deposit requirements. You may need to make a minimum opening deposit to kick things off, and/or maintain a certain account balance to avoid penalties. Of course, not all banks have these kinds of requirements. If you don’t have a ton of extra cash on hand, you may want to look for a high-yield account without any minimums. ",[273],{"type":82,"attrs":274},{"color":84},{"type":119,"attrs":276,"content":277},{"level":200},[278],{"text":279,"type":75,"marks":280},"Access to funds",[281,282],{"type":127},{"type":82,"attrs":283},{"color":84},{"type":71,"content":285},[286,291,296,300],{"text":287,"type":75,"marks":288},"Finally, you should consider how you’d prefer to access your funds. While high-interest savings accounts rarely come with check-writing or debit card capabilities, some banks do provide an ATM card that you can use to withdraw cash. Others only allow ACH or wire transfers. ",[289],{"type":82,"attrs":290},{"color":84},{"type":292,"marks":293},"hard_break",[294],{"type":82,"attrs":295},{"color":106},{"type":292,"marks":297},[298],{"type":82,"attrs":299},{"color":106},{"text":301,"type":75,"marks":302},"Deposit options also vary by account. Many only allow check deposits to be made by mail, and permit only transfers or direct deposits. Other institutions, like Ally Bank and UFB Direct (a division of Axos Bank) permit mobile check deposits via an app. ",[303],{"type":82,"attrs":304},{"color":106},{"type":119,"attrs":306,"content":307},{"level":183},[308],{"text":309,"type":75,"marks":310},"2. Prepare your personal information ",[311,312],{"type":127},{"type":82,"attrs":313},{"color":84},{"type":71,"content":315},[316,321,330],{"text":317,"type":75,"marks":318},"When you’ve chosen the best high-yield savings account for your needs, the next step is to gather your ",[319],{"type":82,"attrs":320},{"color":84},{"text":322,"type":75,"marks":323},"personal information",[324,327,329],{"type":103,"attrs":325},{"href":326,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.businessinsider.com/personal-finance/how-to-open-high-yield-savings-account-online-save-money",{"type":82,"attrs":328},{"color":106},{"type":112},{"text":331,"type":75,"marks":332}," and begin the account opening process. You’ll likely need:",[333],{"type":82,"attrs":334},{"color":106},{"type":336,"content":337},"bullet_list",[338,348,357],{"type":339,"content":340},"list_item",[341],{"type":71,"content":342},[343],{"text":344,"type":75,"marks":345},"A form of identification, such as a driver's license.",[346],{"type":82,"attrs":347},{"color":84},{"type":339,"content":349},[350],{"type":71,"content":351},[352],{"text":353,"type":75,"marks":354},"Proof of your physical address. ",[355],{"type":82,"attrs":356},{"color":106},{"type":339,"content":358},[359],{"type":71,"content":360},[361],{"text":362,"type":75,"marks":363},"Your social security number or Individual Taxpayer Identification number (ITIN).",[364],{"type":82,"attrs":365},{"color":106},{"type":119,"attrs":367,"content":368},{"level":183},[369],{"text":370,"type":75,"marks":371},"3. Submit your application ",[372,373],{"type":127},{"type":82,"attrs":374},{"color":84},{"type":71,"content":376},[377],{"text":378,"type":75,"marks":379},"Most big national banks provide streamlined applications that take just 10 minutes to fill out. If you’re working with a brick-and-mortar bank, you may need to make an in-person appointment to complete your application. If you’re using an online lender, you can almost always complete the entire thing online. ",[380],{"type":82,"attrs":381},{"color":84},{"type":119,"attrs":383,"content":384},{"level":183},[385],{"text":386,"type":75,"marks":387},"4. Make your initial deposit ",[388,389],{"type":127},{"type":82,"attrs":390},{"color":84},{"type":71,"content":392},[393,398,402,406],{"text":394,"type":75,"marks":395},"Once your application is submitted and your identity is confirmed, you’ll be able to add money to your account. Usually, the easiest way to do this is to link your new account to an existing account and transfer funds. ",[396],{"type":82,"attrs":397},{"color":84},{"type":292,"marks":399},[400],{"type":82,"attrs":401},{"color":106},{"type":292,"marks":403},[404],{"type":82,"attrs":405},{"color":106},{"text":407,"type":75,"marks":408},"Some financial institutions will also let you mail a check or use a credit card to make this initial deposit (though using a credit card often comes with high fees). If your account requires a minimum opening deposit, make sure your first deposit amount meets that minimum.",[409],{"type":82,"attrs":410},{"color":106},{"type":119,"attrs":412,"content":413},{"level":183},[414],{"text":415,"type":75,"marks":416},"5. Set up online banking",[417,418],{"type":127},{"type":82,"attrs":419},{"color":84},{"type":71,"content":421},[422],{"text":423,"type":75,"marks":424},"The next step is to set up your online savings account, whether that’s via computer or your bank’s mobile app. From your online dashboard, you’ll be able to link additional accounts, enable mobile alerts, and initiate transfers. You’ll also be able to track your account balance and view your transaction history.",[425],{"type":82,"attrs":426},{"color":84},{"type":119,"attrs":428,"content":429},{"level":183},[430],{"text":431,"type":75,"marks":432},"6. Name beneficiaries ",[433,434],{"type":127},{"type":82,"attrs":435},{"color":84},{"type":71,"content":437},[438],{"text":439,"type":75,"marks":440},"If you weren’t asked to do so during the application process, now is the time to designate a beneficiary. If something were to happen to you, your named beneficiary will inherit the funds from your account. You’ll generally need their legal name, social security number, and other personal information.",[441],{"type":82,"attrs":442},{"color":84},{"type":119,"attrs":444,"content":445},{"level":183},[446],{"text":447,"type":75,"marks":448},"7. Make sure you understand your account limits and regulations  ",[449,450],{"type":127},{"type":82,"attrs":451},{"color":84},{"type":71,"content":453},[454],{"text":455,"type":75,"marks":456},"Lastly, it’s smart to review all the requirements associated with your account. As the primary depositor, you should know how to avoid fees and how many monthly withdrawals you can make without penalty. Also check to see how you can maintain the APY you were initially offered. Some institutions require you to set up recurring transfers or direct deposits before they can offer you their highest APY. ",[457],{"type":82,"attrs":458},{"color":84},{"type":119,"attrs":460,"content":461},{"level":121},[462],{"text":463,"type":75,"marks":464},"Pros of a high-yield savings account ",[465,466],{"type":127},{"type":82,"attrs":467},{"color":84},{"type":336,"content":469},[470,485,500,515,530,545],{"type":339,"content":471},[472],{"type":71,"content":473},[474,480],{"text":475,"type":75,"marks":476},"Higher interest rates than traditional savings accounts",[477,478],{"type":127},{"type":82,"attrs":479},{"color":84},{"text":481,"type":75,"marks":482},". In a traditional savings account, your money is safe, but it’s probably not growing. High-yield savings accounts, on the other hand, allow you to store your money safely while offering you higher rates. Generally, high-yield savings account rates are 15 to 25 times higher than what you’d get with a traditional savings account.",[483],{"type":82,"attrs":484},{"color":106},{"type":339,"content":486},[487],{"type":71,"content":488},[489,495],{"text":490,"type":75,"marks":491},"FDIC-insured for further protection. ",[492,493],{"type":127},{"type":82,"attrs":494},{"color":84},{"text":496,"type":75,"marks":497},"Unlike many stock-market investment vehicles, high-yield savings accounts are protected by the Federal Deposit Insurance Corporation (FDIC). FDIC insurance — sometimes labeled on account disclosures as “member FDIC”— means that you cannot lose your savings due to a fault of your bank, even if the bank goes under.",[498],{"type":82,"attrs":499},{"color":106},{"type":339,"content":501},[502],{"type":71,"content":503},[504,510],{"text":505,"type":75,"marks":506},"More flexible than a CD account. ",[507,508],{"type":127},{"type":82,"attrs":509},{"color":84},{"text":511,"type":75,"marks":512},"A CD (certificate of deposit) account can offer high interest rates, but it will also require you to store those funds for a set term. While your money is in a CD account, you can’t withdraw it before the term is over without incurring penalties and fees. With a high-yield savings account, you’ll be able to make withdrawals and transfers up to a certain limit without penalty.",[513],{"type":82,"attrs":514},{"color":106},{"type":339,"content":516},[517],{"type":71,"content":518},[519,525],{"text":520,"type":75,"marks":521},"Lower-risk than the stock market. ",[522,523],{"type":127},{"type":82,"attrs":524},{"color":84},{"text":526,"type":75,"marks":527},"Long-term, you’re likely to see a higher return on investment from the stock market than with a high-yield savings account. But that ROI may not come before some significant short-term losses. High-yield savings accounts are insulated from those risks, making them better for reaching short-term savings goals.",[528],{"type":82,"attrs":529},{"color":106},{"type":339,"content":531},[532],{"type":71,"content":533},[534,540],{"text":535,"type":75,"marks":536},"Great for money you’re saving for a rainy day. ",[537,538],{"type":127},{"type":82,"attrs":539},{"color":84},{"text":541,"type":75,"marks":542},"High-yield savings accounts are great for storing money you don’t need right now, but may need in the near future. A great example is an emergency fund, or funds you’re saving for a house or car.",[543],{"type":82,"attrs":544},{"color":106},{"type":339,"content":546},[547],{"type":71,"content":548},[549,555],{"text":550,"type":75,"marks":551},"Perfect for storing a windfall. ",[552,553],{"type":127},{"type":82,"attrs":554},{"color":84},{"text":556,"type":75,"marks":557},"Whether it’s birthday money from a relative, a wedding gift, or a tax refund, high-yield savings accounts are a perfect place to store your money until you know what to do with it. By the time you’ve figured out how to use it, there’s a chance it may have already grown.",[558],{"type":82,"attrs":559},{"color":106},{"type":119,"attrs":561,"content":562},{"level":121},[563],{"text":564,"type":75,"marks":565},"Cons of a high-yield savings account",[566,567],{"type":127},{"type":82,"attrs":568},{"color":84},{"type":336,"content":570},[571,600,615,639],{"type":339,"content":572},[573],{"type":71,"content":574},[575,581,586,595],{"text":576,"type":75,"marks":577},"Not as accessible as checking accounts",[578,579],{"type":127},{"type":82,"attrs":580},{"color":84},{"text":582,"type":75,"marks":583},". Legally, you’re only allowed to withdraw money from your high-yield savings account ",[584],{"type":82,"attrs":585},{"color":106},{"text":587,"type":75,"marks":588},"up to 6 times per month",[589,592,594],{"type":103,"attrs":590},{"href":591,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.cnbc.com/select/when-to-open-high-yield-savings-account/",{"type":82,"attrs":593},{"color":106},{"type":112},{"text":596,"type":75,"marks":597}," without fees. For that reason, everyday spending money is better stored in a checking account, where you won’t be charged for consistent usage.",[598],{"type":82,"attrs":599},{"color":106},{"type":339,"content":601},[602],{"type":71,"content":603},[604,610],{"text":605,"type":75,"marks":606},"More requirements than a traditional savings account",[607,608],{"type":127},{"type":82,"attrs":609},{"color":84},{"text":611,"type":75,"marks":612},". Traditional bank accounts don’t always require you to maintain a minimum balance, but high-yield savings accounts often do. High-yield savings accounts also have withdrawal and transfer limits, which you’re less likely to find with a traditional bank account.",[613],{"type":82,"attrs":614},{"color":106},{"type":339,"content":616},[617],{"type":71,"content":618},[619,625,630],{"text":620,"type":75,"marks":621},"Won’t keep up with inflation.",[622,623],{"type":127},{"type":82,"attrs":624},{"color":84},{"text":626,"type":75,"marks":627}," The interest you earn on your high-yield savings accounts will be higher than what you’d get on traditional savings accounts, but it’s still lower than the rate of inflation. For long-term ROI, ",[628],{"type":82,"attrs":629},{"color":106},{"text":631,"type":75,"marks":632},"your money is better stored elsewhere.",[633,636,638],{"type":103,"attrs":634},{"href":635,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.nerdwallet.com/article/investing/the-best-investments-right-now#mutual",{"type":82,"attrs":637},{"color":106},{"type":112},{"type":339,"content":640},[641],{"type":71,"content":642},[643,649],{"text":644,"type":75,"marks":645},"You may earn less than advertised.",[646,647],{"type":127},{"type":82,"attrs":648},{"color":84},{"text":650,"type":75,"marks":651}," The interest rates on high-yield savings accounts aren’t locked in. So if you see an account offering a high rate, know that that rate is subject to change at the bank’s discretion. That means you may not earn as much as you thought you would going in. ",[652],{"type":82,"attrs":653},{"color":106},{"type":119,"attrs":655,"content":656},{"level":121},[657],{"text":658,"type":75,"marks":659},"Alternatives to a high-yield savings account ",[660,661],{"type":127},{"type":82,"attrs":662},{"color":84},{"type":119,"attrs":664,"content":665},{"level":183},[666],{"text":667,"type":75,"marks":668},"A money market account",[669,670],{"type":127},{"type":82,"attrs":671},{"color":84},{"type":71,"content":673},[674],{"text":675,"type":75,"marks":676},"A money market account is similar to high-yield savings in that it offers higher interest rates than a traditional bank account. Though money market interest rates tend to be a little lower than high-yield savings interest rates, the benefit to a money market account is that it’s more likely to offer check-writing and ATM access. ",[677],{"type":82,"attrs":678},{"color":84},{"type":71,"content":680},[681],{"text":682,"type":75,"marks":683},"Money market accounts are available from banks, credit unions, brokerages, and large financial institutions like Capital One or Goldman Sachs. They're also sometimes called money market deposit accounts (MMDA). The name \"money market\" comes from the fact that this type of account allows you to keep your funds liquid — meaning you can easily access them — while still earning a decent rate of return on your money.",[684],{"type":82,"attrs":685},{"color":84},{"type":119,"attrs":687,"content":688},{"level":183},[689],{"text":690,"type":75,"marks":691},"A CD account",[692,693],{"type":127},{"type":82,"attrs":694},{"color":84},{"type":71,"content":696},[697],{"text":698,"type":75,"marks":699},"CDs are a type of savings account insured by the FDIC that can help you earn higher interest rates. With a CD, you agree to keep your money in an account for a specific period of time, and in return the bank promises to grow that money at a fixed interest rate. If you withdraw money from your CD before it matures, you'll pay an early withdrawal penalty that could even wipe out the gains from the interest you earned.",[700],{"type":82,"attrs":701},{"color":84},{"type":71,"content":703},[704],{"text":705,"type":75,"marks":706},"CDs typically come in terms ranging from three months to five years, but longer terms give you better returns than shorter ones. Interest rates on CDs can vary widely depending on the term length and type of CD. You'll also see different types of CDs, including regular CDs, jumbo CDs, and IRA CDs. Each one will have different benefits and drawbacks, so be sure to do your research.",[707],{"type":82,"attrs":708},{"color":84},{"type":119,"attrs":710,"content":711},{"level":121},[712],{"text":713,"type":75,"marks":714},"Explore savings accounts on Navient Marketplace",[715,716],{"type":127},{"type":82,"attrs":717},{"color":84},{"type":71,"content":719},[720],{"text":721,"type":75,"marks":722},"High-yield savings accounts are a great way to get a high APY on funds that would otherwise remain stagnant. That makes them one of the best ways to reach your short-term savings goals. With this type of account, you get guaranteed interest earnings, and you won’t have to risk losing any of your hard-earned cash. ",[723],{"type":82,"attrs":724},{"color":84},{"type":71,"content":726},[727,732,741],{"text":728,"type":75,"marks":729},"If you’re ready to move your money out of your traditional bank account and start growing your savings for real, the Navient Marketplace is a great place to start. This robust online platform has everything you need to learn more about high-yield savings accounts and compare financial products in a convenient one-stop shop. Visit ",[730],{"type":82,"attrs":731},{"color":84},{"text":733,"type":75,"marks":734},"Navient Marketplace",[735,738,740],{"type":103,"attrs":736},{"href":737,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://marketplace.navient.com/",{"type":82,"attrs":739},{"color":106},{"type":112},{"text":742,"type":75,"marks":743}," today to get started.",[744],{"type":82,"attrs":745},{"color":106},{"type":71,"content":747},[748],{"text":749,"type":75,"marks":750},"Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.",[751,753],{"type":78,"attrs":752},{"class":80},{"type":82,"attrs":754},{"color":84},{"type":71,"content":756},[757,764],{"text":758,"type":75,"marks":759},"Information in this blog, including the rates advertised, are current as of 04/27/2023 and subject to change.",[760,762],{"type":78,"attrs":761},{"class":80},{"type":82,"attrs":763},{"color":84},{"text":765,"type":75,"marks":766}," ",[767],{"type":82,"attrs":768},{"color":106},"Typography","mx-7 blog-post-text blog-post-headers",true,{"type":68,"content":773},[774],{"type":71},"\u003C!--#storyblok#{\"name\": \"Typography\", \"space\": \"157494\", \"uid\": \"bbe4297a-be79-46dd-9df2-7033f885ffea\", \"id\": \"651798206\"}-->","start","Column","\u003C!--#storyblok#{\"name\": \"Column\", \"space\": \"157494\", \"uid\": \"fb1f586b-34d2-4553-84a6-1c536ab78608\", \"id\": 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text-transform-none text-size-sub-1","Button","\u003C!--#storyblok#{\"name\": \"Button\", \"space\": \"157494\", \"uid\": \"60b7aad0-4fb5-4ec4-b557-61a0608af582\", \"id\": \"651798206\"}-->","\u003C!--#storyblok#{\"name\": \"BackToTop\", \"space\": \"157494\", \"uid\": \"64db4d07-4185-4db4-b8e4-7af1e0eed038\", \"id\": \"651798206\"}-->","1240px","Grid","pl-0","ml-7",{"id":106,"alt":106,"name":18,"focus":106,"title":106,"filename":18,"copyright":106,"fieldtype":808},"\u003C!--#storyblok#{\"name\": \"Grid\", \"space\": \"157494\", \"uid\": \"4c330c4e-f5a7-41f6-8f59-8e9ddfcddf76\", \"id\": \"651798206\"}-->","Savings","BlogPost","https://www.marketplace.navient.com/blog/how-to-open-a-high-yield-savings-account/","\u003C!--#storyblok#{\"name\": \"BlogPost\", \"space\": \"157494\", \"uid\": \"24614723-3c23-4d4f-990b-c49a1b45edce\", \"id\": \"651798206\"}-->","how-to-open-a-high-yield-savings-account","navient_marketplace/blog/how-to-open-a-high-yield-savings-account",20,[],651751493,"20088926-a3c0-4812-aa8e-a6c1af508cfa","2023-05-10T19:26:42.913Z","default",[],{"name":873,"created_at":874,"published_at":875,"updated_at":876,"id":877,"uuid":878,"content":879,"slug":1721,"full_slug":1722,"sort_by_date":106,"position":1723,"tag_list":1724,"is_startpage":45,"parent_id":867,"meta_data":106,"group_id":1725,"first_published_at":1726,"release_id":106,"lang":870,"path":106,"alternates":1727,"default_full_slug":106,"translated_slugs":106},"The Pros and Cons of High-Yield Savings Accounts","2025-04-07T18:31:34.194Z","2025-12-26T13:45:15.365Z","2025-12-26T13:45:15.444Z",651798207,"196a7bb1-a58b-47d4-a460-07ed53de04ba",{"seo":880,"_uid":20,"body":883,"author":895,"category":859,"featured":45,"component":860,"canonicalTag":1719,"_editable":1720},{"_uid":15,"title":881,"plugin":17,"og_image":18,"og_title":18,"description":882,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"The Pros and Cons of High-Yield Savings Accounts - Navient Marketplace","High-yield savings accounts have high interest rates, but they're bad for building long-term wealth. Learn pros & cons of high-yield savings accounts here. ",[884,898,1704],{"id":23,"_uid":885,"image":886,"intro":887,"author":888,"classes":889,"category":18,"featured":45,"blogTitle":873,"component":46,"imageLink":894,"blendImage":45,"authorRoute":895,"publishedDate":896,"backgroundColor":50,"_editable":897},"02557530-adb9-49fb-9319-277497a70cb8","//a.storyblok.com/f/110029/800x534/c831baed33/pros-and-cons-of-high-yield-savings-account.png","Here’s how to take advantage of high-yield savings accounts and determine whether or not they’re right for you.","Ted Vrountas",[890],{"_uid":891,"component":31,"titleColor":32,"dateClasses":33,"titleClasses":892,"authorClasses":35,"subtitleColor":36,"subtitleClasses":38,"dateMobileClasses":39,"titleMobileClasses":40,"authorMobileClasses":41,"featuredMobileClasses":42,"subtitleMobileClasses":43,"_editable":893},"6bc0d925-925b-40e2-8cb5-ac30d0086187","text-h4 mt-6 font-weight-bold","\u003C!--#storyblok#{\"name\": \"BlogHeroStyle\", \"space\": \"157494\", \"uid\": \"6bc0d925-925b-40e2-8cb5-ac30d0086187\", \"id\": \"651798207\"}-->","/images/pros-and-cons-of-high-yield-savings-account.png","ted-vrountas","Updated: May 8, 2023","\u003C!--#storyblok#{\"name\": \"BlogHero\", \"space\": \"157494\", \"uid\": \"02557530-adb9-49fb-9319-277497a70cb8\", \"id\": \"651798207\"}-->",{"_uid":899,"bloks":900,"classes":830,"component":831,"mobileClasses":18,"containerContent":1702,"_editable":1703},"222843d6-4c0d-4ac3-aa5f-7f579c49c5fe",[901],{"_uid":902,"bloks":903,"classes":18,"justify":776,"component":828,"mobileClasses":18,"_editable":1701},"0737a92f-e416-438d-b8db-1c0e86499923",[904,1675],{"lg":59,"md":59,"sm":60,"_uid":905,"cols":60,"bloks":906,"alignSelf":776,"component":777,"_editable":1674},"c286affa-ee04-4348-8508-6e9f77932903",[907],{"_uid":908,"color":65,"classes":66,"content":18,"richText":909,"component":769,"mobileClasses":770,"enableRichText":771,"richTextMobile":1670,"_editable":1673},"a64c4df0-154e-4c12-b867-678d292709f4",{"type":68,"content":910},[911,920,927,934,943,990,999,1006,1013,1022,1032,1080,1089,1110,1144,1153,1174,1181,1188,1197,1204,1211,1232,1240,1249,1270,1291,1300,1307,1314,1323,1369,1378,1399,1408,1512,1520,1527,1535,1556,1563,1571,1605,1612,1620,1627,1634,1653,1661],{"type":71,"content":912},[913],{"text":74,"type":75,"marks":914},[915,917],{"type":78,"attrs":916},{"class":80},{"type":82,"attrs":918},{"color":919},"rgb(0, 0, 0)",{"type":71,"content":921},[922],{"text":923,"type":75,"marks":924},"If you’re like countless Americans, you keep the money you save in a standard savings account. And why not? It does the job of storing your money well enough. It’s safe from market volatility, insured by the federal deposit insurance corporation (FDIC), and easily accessible when you need it. ",[925],{"type":82,"attrs":926},{"color":919},{"type":71,"content":928},[929],{"text":930,"type":75,"marks":931},"The only problem is that you may be missing out on higher interest rates that could help your savings grow. Standard savings accounts have very low rates — usually less than one percent. With that kind of rate, you’ll likely only make a few dollars per year on your money. With a high-yield savings account, however, you could make hundreds of dollars annually just by leaving your savings untouched. Here’s how to take advantage of high-yield savings accounts and determine whether or not they’re right for you. ",[932],{"type":82,"attrs":933},{"color":919},{"type":119,"attrs":935,"content":936},{"level":121},[937],{"text":938,"type":75,"marks":939},"Key takeaways ",[940,941],{"type":127},{"type":82,"attrs":942},{"color":919},{"type":336,"content":944},[945,954,963,972,981],{"type":339,"content":946},[947],{"type":71,"content":948},[949],{"text":950,"type":75,"marks":951},"A high-yield savings account is a type of bank account that pays more in interest than a traditional savings account.",[952],{"type":82,"attrs":953},{"color":919},{"type":339,"content":955},[956],{"type":71,"content":957},[958],{"text":959,"type":75,"marks":960},"High-yield savings accounts offer easy access to deposited funds, but you may have to pay fees or maintain a certain minimum balance to keep the account open.",[961],{"type":82,"attrs":962},{"color":919},{"type":339,"content":964},[965],{"type":71,"content":966},[967],{"text":968,"type":75,"marks":969},"High-yield savings accounts are great for growing money you plan to spend in the next few years, but they’re not ideal for building long-term wealth. ",[970],{"type":82,"attrs":971},{"color":919},{"type":339,"content":973},[974],{"type":71,"content":975},[976],{"text":977,"type":75,"marks":978},"When choosing a high-yield savings account, be sure to evaluate the annual percentage yield (APY), fees, account accessibility, overdraft protections, and minimum deposit and balance requirements.",[979],{"type":82,"attrs":980},{"color":919},{"type":339,"content":982},[983],{"type":71,"content":984},[985],{"text":986,"type":75,"marks":987},"Popular alternatives to high-yield savings accounts are CD accounts and money market savings accounts.",[988],{"type":82,"attrs":989},{"color":919},{"type":119,"attrs":991,"content":992},{"level":121},[993],{"text":994,"type":75,"marks":995},"What is a high-yield savings account?",[996,997],{"type":127},{"type":82,"attrs":998},{"color":919},{"type":71,"content":1000},[1001],{"text":1002,"type":75,"marks":1003},"A high-yield savings account is a bank account that pays a higher interest rate than what you’d get with a standard savings account at a traditional bank. The rate you earn on your deposited funds will depend on a number of factors, including the bank you choose, the national economy, where you're located, and how much you deposit into the account. ",[1004],{"type":82,"attrs":1005},{"color":919},{"type":71,"content":1007},[1008],{"text":1009,"type":75,"marks":1010},"High-yield savings accounts typically come with more restrictions than regular savings accounts, but they typically offer interest rates 10 to 15 times higher than standard savings accounts do. You can open a high-yield account at nearly any financial institution, including brick-and-mortar banks, credit unions, and online banks.",[1011],{"type":82,"attrs":1012},{"color":919},{"type":119,"attrs":1014,"content":1015},{"level":121},[1016],{"text":1017,"type":75,"marks":1018},"Pros of a high-yield savings account",[1019,1020],{"type":127},{"type":82,"attrs":1021},{"color":919},{"type":119,"attrs":1023,"content":1024},{"level":183},[1025],{"text":1026,"type":75,"marks":1027},"Higher APY",[1028,1029],{"type":127},{"type":82,"attrs":1030},{"color":1031},"rgb(67, 67, 67)",{"type":71,"content":1033},[1034,1039,1049,1054,1062,1067,1075],{"text":1035,"type":75,"marks":1036},"The most obvious advantage of high-yield savings accounts is their high annual percentage yields (APYs). Right now, traditional savings accounts offer a ",[1037],{"type":82,"attrs":1038},{"color":919},{"text":1040,"type":75,"marks":1041},"national average APY of .40%. ",[1042,1045,1048],{"type":103,"attrs":1043},{"href":1044,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://smartasset.com/checking-account/average-savings-account-interest",{"type":82,"attrs":1046},{"color":1047},"rgb(17, 85, 204)",{"type":112},{"text":1050,"type":75,"marks":1051},"Today’s best high-yield savings accounts, however, boast rates ",[1052],{"type":82,"attrs":1053},{"color":919},{"text":1055,"type":75,"marks":1056},"upwards of 4%",[1057,1059,1061],{"type":103,"attrs":1058},{"href":142,"uuid":106,"anchor":106,"target":107,"linktype":108},{"type":82,"attrs":1060},{"color":1047},{"type":112},{"text":1063,"type":75,"marks":1064}," for qualifying account holders. Better yet, that’s ",[1065],{"type":82,"attrs":1066},{"color":919},{"text":159,"type":75,"marks":1068},[1069,1072,1074],{"type":103,"attrs":1070},{"href":1071,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.experian.com/blogs/ask-experian/how-compound-interest-works/",{"type":82,"attrs":1073},{"color":1047},{"type":112},{"text":1076,"type":75,"marks":1077},", which means you’ll earn money on both your original deposit and on the interest you make. As a result, your savings will snowball over time. ",[1078],{"type":82,"attrs":1079},{"color":919},{"type":119,"attrs":1081,"content":1082},{"level":183},[1083],{"text":1084,"type":75,"marks":1085},"Accessible",[1086,1087],{"type":127},{"type":82,"attrs":1088},{"color":1031},{"type":71,"content":1090},[1091,1096,1105],{"text":1092,"type":75,"marks":1093},"High-yield savings accounts aren’t the only savings vehicles that offer high APYs. In fact, ",[1094],{"type":82,"attrs":1095},{"color":919},{"text":1097,"type":75,"marks":1098},"CD accounts",[1099,1102,1104],{"type":103,"attrs":1100},{"href":1101,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://bettermoneyhabits.bankofamerica.com/en/personal-banking/what-is-a-cd-investment",{"type":82,"attrs":1103},{"color":1047},{"type":112},{"text":1106,"type":75,"marks":1107}," are likely to offer even higher APYs than high-yield savings accounts. However, CD accounts also require you to lock in your money for a set term –– meaning you won’t be able to withdraw it until the term is over without incurring a penalty. ",[1108],{"type":82,"attrs":1109},{"color":919},{"type":71,"content":1111},[1112,1117,1126,1131,1135,1139],{"text":1113,"type":75,"marks":1114},"On the other hand, high-yield savings accounts allow you to move money at least six times per month without penalty. In the past this was a federally mandated cap. In 2020, however, the Federal Reserve passed a motion called “Regulation D,” which ",[1115],{"type":82,"attrs":1116},{"color":919},{"text":1118,"type":75,"marks":1119},"removed this limit",[1120,1123,1125],{"type":103,"attrs":1121},{"href":1122,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.bankrate.com/banking/federal-reserve-lifts-regulation-d-withdrawal-limit/",{"type":82,"attrs":1124},{"color":1047},{"type":112},{"text":1127,"type":75,"marks":1128},". This was part to ease financial burdens during the Covid-19 pandemic, but the Fed doesn’t have plans to reinstitute the limit. Many banks now allow unlimited transfers. ",[1129],{"type":82,"attrs":1130},{"color":919},{"type":292,"marks":1132},[1133],{"type":82,"attrs":1134},{"color":919},{"type":292,"marks":1136},[1137],{"type":82,"attrs":1138},{"color":919},{"text":1140,"type":75,"marks":1141},"So, if you think there’s a chance you might need some of the money you’re hoping to earn interest on, a high-yield savings account offers more flexibility than a CD account. ",[1142],{"type":82,"attrs":1143},{"color":919},{"type":119,"attrs":1145,"content":1146},{"level":183},[1147],{"text":1148,"type":75,"marks":1149},"Safe ",[1150,1151],{"type":127},{"type":82,"attrs":1152},{"color":1031},{"type":71,"content":1154},[1155,1160,1169],{"text":1156,"type":75,"marks":1157},"Popular high-yield savings accounts are FDIC insured (look for “member FDIC” listed in the account terms), which means that if your bank goes out of business, the U.S. government will reimburse you for your money ",[1158],{"type":82,"attrs":1159},{"color":919},{"text":1161,"type":75,"marks":1162},"up to a certain limit",[1163,1166,1168],{"type":103,"attrs":1164},{"href":1165,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.fdic.gov/resources/deposit-insurance/",{"type":82,"attrs":1167},{"color":1047},{"type":112},{"text":1170,"type":75,"marks":1171}," per depositor. ",[1172],{"type":82,"attrs":1173},{"color":919},{"type":71,"content":1175},[1176],{"text":1177,"type":75,"marks":1178},"High-yield accounts are also nowhere near as volatile as other popular investment vehicles like stocks. Rates on high-yield accounts are variable, which means the rate you were initially advertised may not remain the same throughout the term. Even so, you can feel secure knowing that your savings won’t won't lose value in that time, in the way they could in the stock market. ",[1179],{"type":82,"attrs":1180},{"color":919},{"type":71,"content":1182},[1183],{"text":1184,"type":75,"marks":1185},"With a high-yield savings account, there’s essentially no risk of losing money. That’s why these accounts are so great for growing funds that you intend to spend within the short term, but don’t want to lose –– like a down payment for a house or car. ",[1186],{"type":82,"attrs":1187},{"color":919},{"type":119,"attrs":1189,"content":1190},{"level":183},[1191],{"text":1192,"type":75,"marks":1193},"Great for building an emergency fund ",[1194,1195],{"type":127},{"type":82,"attrs":1196},{"color":1031},{"type":71,"content":1198},[1199],{"text":1200,"type":75,"marks":1201},"Instead of storing your emergency fund in a traditional savings account, why not put it in a high-yield environment where it will grow while it’s not in use? ",[1202],{"type":82,"attrs":1203},{"color":919},{"type":71,"content":1205},[1206],{"text":1207,"type":75,"marks":1208},"Here’s a good example. Right now, the best high-yield savings accounts offer APYs around 4%. If you made an initial deposit of $5,000, then deposited $300 every month for three years in this kind of account, you would have $17,129.01 by the end of that period (provided the APY remained 4.0% for all three years). ",[1209],{"type":82,"attrs":1210},{"color":106},{"type":71,"content":1212},[1213,1218,1227],{"text":1214,"type":75,"marks":1215},"Conversely, if you adopted that same savings plan with a traditional savings account that ",[1216],{"type":82,"attrs":1217},{"color":919},{"text":1219,"type":75,"marks":1220},"offers a 0.33% APY",[1221,1224,1226],{"type":103,"attrs":1222},{"href":1223,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.businessinsider.com/personal-finance/average-savings-account-interest-rate",{"type":82,"attrs":1225},{"color":1047},{"type":112},{"text":1228,"type":75,"marks":1229},", you’d only have $15,904.86 at the end of those three years. That’s a difference of $1,224.17. As part of an emergency fund, that $1,224 could go toward covering an expense that you would otherwise have to put on a credit card. And charging big expenses to credit cards, which are known for particularly high interest rates, can put you on the fast track to unmanageable debt. ",[1230],{"type":82,"attrs":1231},{"color":919},{"type":119,"attrs":1233,"content":1234},{"level":121},[1235],{"text":564,"type":75,"marks":1236},[1237,1238],{"type":127},{"type":82,"attrs":1239},{"color":919},{"type":119,"attrs":1241,"content":1242},{"level":183},[1243],{"text":1244,"type":75,"marks":1245},"Not as accessible as a checking account",[1246,1247],{"type":127},{"type":82,"attrs":1248},{"color":1031},{"type":71,"content":1250},[1251,1256,1265],{"text":1252,"type":75,"marks":1253},"Despite ",[1254],{"type":82,"attrs":1255},{"color":919},{"text":1257,"type":75,"marks":1258},"Regulation D",[1259,1262,1264],{"type":103,"attrs":1260},{"href":1261,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.forbes.com/advisor/banking/savings/regulation-d/#:~:text=Under%20the%20revision%20to%20Regulation,for%20unlimited%20transfers%20or%20withdrawals.",{"type":82,"attrs":1263},{"color":1047},{"type":112},{"text":1266,"type":75,"marks":1267},", some high-yield savings accounts still only allow you to withdraw funds six times per month. More than that, and you may have to pay penalties or fees. You may find banks that offer you unlimited transfers and withdrawals, while others still adhere strictly to the six-per-month withdrawal limit. ",[1268],{"type":82,"attrs":1269},{"color":919},{"type":71,"content":1271},[1272,1277,1286],{"text":1273,"type":75,"marks":1274},"High-yield savings accounts also don’t come with debit cards or checkbooks, which means you can’t spend directly from the account. So, if you’re planning to use your high-yield savings account like a ",[1275],{"type":82,"attrs":1276},{"color":919},{"text":1278,"type":75,"marks":1279},"high-interest checking account",[1280,1283,1285],{"type":103,"attrs":1281},{"href":1282,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.chime.com/blog/what-are-high-interest-checking-accounts/",{"type":82,"attrs":1284},{"color":1047},{"type":112},{"text":1287,"type":75,"marks":1288},", you’re going to be disappointed. ",[1289],{"type":82,"attrs":1290},{"color":919},{"type":119,"attrs":1292,"content":1293},{"level":183},[1294],{"text":1295,"type":75,"marks":1296},"Stricter requirements to maintain  ",[1297,1298],{"type":127},{"type":82,"attrs":1299},{"color":1031},{"type":71,"content":1301},[1302],{"text":1303,"type":75,"marks":1304},"Many banks allow you to open a traditional savings account without making a minimum deposit or maintaining a minimum balance. In contrast, high-yield savings accounts usually do require minimums.",[1305],{"type":82,"attrs":1306},{"color":919},{"type":71,"content":1308},[1309],{"text":1310,"type":75,"marks":1311},"Generally, minimum deposits can range from a few dollars to $1,000 or more, and minimum balances can range from just one dollar to several thousand. If you can’t meet these minimums, you won’t be allowed to open an account or earn interest, and you may be charged a penalty fee. That said, some modern high-yield savings accounts require zero minimums. If you open an account with the right financial institution, you may find that it’s just as easy to open and maintain a high-yield savings account as it is a traditional savings account. ",[1312],{"type":82,"attrs":1313},{"color":919},{"type":119,"attrs":1315,"content":1316},{"level":183},[1317],{"text":1318,"type":75,"marks":1319},"Bad for wealth-building ",[1320,1321],{"type":127},{"type":82,"attrs":1322},{"color":1031},{"type":71,"content":1324},[1325,1330,1337,1342,1346,1350,1355,1364],{"text":1326,"type":75,"marks":1327},"High-yield savings accounts allow you to earn more than you would in a traditional savings account. However, the interest you earn won’t be enough to keep up with inflation. In other words, your money will grow inside the high-yield savings account, but the value of the dollar will likely decrease at an even faster rate. So, if you put a bunch of cash into a high-yield account in 2020, you’ll have more than you started with in 2025, but the actual ",[1328],{"type":82,"attrs":1329},{"color":919},{"text":1331,"type":75,"marks":1332},"value ",[1333,1335],{"type":1334},"italic",{"type":82,"attrs":1336},{"color":919},{"text":1338,"type":75,"marks":1339},"of that money will be less due to inflation. ",[1340],{"type":82,"attrs":1341},{"color":919},{"type":292,"marks":1343},[1344],{"type":82,"attrs":1345},{"color":919},{"type":292,"marks":1347},[1348],{"type":82,"attrs":1349},{"color":919},{"text":1351,"type":75,"marks":1352},"If your goal is long-term wealth building –– if you’re saving for retirement or your kids’ college fund, for example –– your money is more likely to help you meet your financial goals if you put it ",[1353],{"type":82,"attrs":1354},{"color":919},{"text":1356,"type":75,"marks":1357},"in a diversified portfolio",[1358,1361,1363],{"type":103,"attrs":1359},{"href":1360,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.bankrate.com/investing/saving-vs-investing/#different",{"type":82,"attrs":1362},{"color":1047},{"type":112},{"text":1365,"type":75,"marks":1366}," instead of a high-yield savings account.",[1367],{"type":82,"attrs":1368},{"color":919},{"type":119,"attrs":1370,"content":1371},{"level":183},[1372],{"text":1373,"type":75,"marks":1374},"APY is not guaranteed ",[1375,1376],{"type":127},{"type":82,"attrs":1377},{"color":1031},{"type":71,"content":1379},[1380,1385,1394],{"text":1381,"type":75,"marks":1382},"The APY you see advertised as you shop for a high-yield savings account may look enticing, but it’s not necessarily guaranteed. These rates are “",[1383],{"type":82,"attrs":1384},{"color":919},{"text":1386,"type":75,"marks":1387},"variable APYs",[1388,1391,1393],{"type":103,"attrs":1389},{"href":1390,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.ally.com/stories/save/how-is-annual-percentage-yield-calculated/",{"type":82,"attrs":1392},{"color":1047},{"type":112},{"text":1395,"type":75,"marks":1396},",” which means they’re subject to change at any time. Though your savings are FDIC-insured to keep you from actually losing money, there are no federal regulations that prevent you from earning less than advertised if the bank decides to lower its rate.  ",[1397],{"type":82,"attrs":1398},{"color":919},{"type":119,"attrs":1400,"content":1401},{"level":121},[1402],{"text":1403,"type":75,"marks":1404},"How to pick a high-yield savings account ",[1405,1406],{"type":127},{"type":82,"attrs":1407},{"color":919},{"type":336,"content":1409},[1410,1424,1439,1467,1482,1497],{"type":339,"content":1411},[1412],{"type":71,"content":1413},[1414,1419],{"text":203,"type":75,"marks":1415},[1416,1417],{"type":127},{"type":82,"attrs":1418},{"color":919},{"text":1420,"type":75,"marks":1421},": The interest rate you can earn on your savings is one of the most important factors to consider when choosing a high-yield savings account. The higher the APY, the better.",[1422],{"type":82,"attrs":1423},{"color":919},{"type":339,"content":1425},[1426],{"type":71,"content":1427},[1428,1434],{"text":1429,"type":75,"marks":1430},"Minimum balance and deposit amount",[1431,1432],{"type":127},{"type":82,"attrs":1433},{"color":919},{"text":1435,"type":75,"marks":1436},": Some banks have minimum balance requirements you must meet to earn interest. If you don't have enough money in your account, the bank may charge you an administrative fee or close your account altogether.",[1437],{"type":82,"attrs":1438},{"color":919},{"type":339,"content":1440},[1441],{"type":71,"content":1442},[1443,1448,1453,1462],{"text":233,"type":75,"marks":1444},[1445,1446],{"type":127},{"type":82,"attrs":1447},{"color":919},{"text":1449,"type":75,"marks":1450},": Look closely at any fees associated with opening and maintaining an account. Some banks charge monthly maintenance fees. Others levy penalties if you make withdrawals too early or often. Some of the ",[1451],{"type":82,"attrs":1452},{"color":919},{"text":1454,"type":75,"marks":1455},"best high-yield savings accounts",[1456,1459,1461],{"type":103,"attrs":1457},{"href":1458,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://fortune.com/recommends/banking/best-high-yield-savings-accounts/",{"type":82,"attrs":1460},{"color":1047},{"type":112},{"text":1463,"type":75,"marks":1464}," have no fees, so try searching for “no-fee high-yield savings accounts.”",[1465],{"type":82,"attrs":1466},{"color":919},{"type":339,"content":1468},[1469],{"type":71,"content":1470},[1471,1477],{"text":1472,"type":75,"marks":1473},"Online access:",[1474,1475],{"type":127},{"type":82,"attrs":1476},{"color":919},{"text":1478,"type":75,"marks":1479}," Some brick-and-mortar institutions require account holders to make all transactions at a physical bank location. If this doesn’t fit your schedule, look for mobile banking options, which will let you manage your money anywhere and at any time. Many online banks offer fully online savings accounts, which can be a convenient option for many savers.",[1480],{"type":82,"attrs":1481},{"color":919},{"type":339,"content":1483},[1484],{"type":71,"content":1485},[1486,1492],{"text":1487,"type":75,"marks":1488},"Overdraft protection",[1489,1490],{"type":127},{"type":82,"attrs":1491},{"color":919},{"text":1493,"type":75,"marks":1494},": Look to see whether or not your bank offers overdraft protection. If it does, how much money does it allow users to borrow against their balance without charging penalties?",[1495],{"type":82,"attrs":1496},{"color":919},{"type":339,"content":1498},[1499],{"type":71,"content":1500},[1501,1507],{"text":1502,"type":75,"marks":1503},"Accessibility",[1504,1505],{"type":127},{"type":82,"attrs":1506},{"color":919},{"text":1508,"type":75,"marks":1509},": Consider your preferred way to add and withdraw funds. Do you prefer the set-it-and-forget-it ease of direct deposits? Will you want to withdraw cash via an ATM card? These accessibility features may not be deal-breakers if you find an account with a particularly high APY, but they could help you decide between two accounts that are otherwise similar.",[1510],{"type":82,"attrs":1511},{"color":919},{"type":119,"attrs":1513,"content":1514},{"level":121},[1515],{"text":658,"type":75,"marks":1516},[1517,1518],{"type":127},{"type":82,"attrs":1519},{"color":919},{"type":71,"content":1521},[1522],{"text":1523,"type":75,"marks":1524},"High-yield savings accounts aren’t for everyone. Here are some other alternatives you can use to save money and reach your personal finance goals. ",[1525],{"type":82,"attrs":1526},{"color":919},{"type":119,"attrs":1528,"content":1529},{"level":183},[1530],{"text":667,"type":75,"marks":1531},[1532,1533],{"type":127},{"type":82,"attrs":1534},{"color":1031},{"type":71,"content":1536},[1537,1542,1551],{"text":1538,"type":75,"marks":1539},"Like a high-yield savings account, a ",[1540],{"type":82,"attrs":1541},{"color":919},{"text":1543,"type":75,"marks":1544},"money market savings account (MMA)",[1545,1548,1550],{"type":103,"attrs":1546},{"href":1547,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.forbes.com/advisor/banking/what-is-a-money-market-account-and-how-does-it-work/",{"type":82,"attrs":1549},{"color":1047},{"type":112},{"text":1552,"type":75,"marks":1553}," is a deposit account that pays interest, typically at higher rates than what you would earn on traditional savings accounts. You can open an MMA at most banks and credit unions, as well as with brokerage firms such as Fidelity, Schwab, and TD Ameritrade. ",[1554],{"type":82,"attrs":1555},{"color":919},{"type":71,"content":1557},[1558],{"text":1559,"type":75,"marks":1560},"In general, money market accounts are designed to both provide depositors with access to their funds, and to pay interest at competitive rates. The main difference between a savings account and a money market account is the availability of check-writing privileges. While both types of accounts allow you access to your cash, many money market accounts allow you to write checks or use debit cards, which can make it quicker and easier to make withdrawals.",[1561],{"type":82,"attrs":1562},{"color":919},{"type":119,"attrs":1564,"content":1565},{"level":183},[1566],{"text":690,"type":75,"marks":1567},[1568,1569],{"type":127},{"type":82,"attrs":1570},{"color":1031},{"type":71,"content":1572},[1573,1578,1582,1586,1591,1600],{"text":1574,"type":75,"marks":1575},"A CD account is a savings account that locks your money away for a predetermined amount of time and, in return, offers high interest rates on your funds. Most CDs have terms ranging from one month to five years. Often, rates are highest for one- to three- year CDs. Longer-term CDs are slightly riskier for lenders, who can’t be sure that national interest rates won’t plummet within that time. So, sometimes rates start to dip after the five-year term mark.",[1576],{"type":82,"attrs":1577},{"color":919},{"type":292,"marks":1579},[1580],{"type":82,"attrs":1581},{"color":919},{"type":292,"marks":1583},[1584],{"type":82,"attrs":1585},{"color":919},{"text":1587,"type":75,"marks":1588},"While there are many types of CDs available in today's market, including ",[1589],{"type":82,"attrs":1590},{"color":919},{"text":1592,"type":75,"marks":1593},"bump-up and step-up CDs",[1594,1597,1599],{"type":103,"attrs":1595},{"href":1596,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.bankrate.com/banking/cds/bump-up-cd/#how-to-open",{"type":82,"attrs":1598},{"color":1047},{"type":112},{"text":1601,"type":75,"marks":1602},", the traditional fixed-rate CD remains the most popular. With this type of CD, the interest rate remains steady throughout the life of the account.",[1603],{"type":82,"attrs":1604},{"color":919},{"type":71,"content":1606},[1607],{"text":1608,"type":75,"marks":1609},"Keep in mind that if you choose to withdraw money before the end of the term, you'll be charged an early withdrawal penalty that could eat into your earnings. CDs generally offer higher APYs than high-yield savings accounts, but the tradeoff is that your funds are much less accessible.",[1610],{"type":82,"attrs":1611},{"color":919},{"type":119,"attrs":1613,"content":1614},{"level":121},[1615],{"text":713,"type":75,"marks":1616},[1617,1618],{"type":127},{"type":82,"attrs":1619},{"color":919},{"type":71,"content":1621},[1622],{"text":1623,"type":75,"marks":1624},"If you’re storing your short-term savings in a traditional savings account, you could be missing out on significant earnings. High-yield savings accounts are ideal for funds that you don’t plan to spend immediately but also don’t want to risk losing — like an emergency fund or a down payment for a home. ",[1625],{"type":82,"attrs":1626},{"color":919},{"type":71,"content":1628},[1629],{"text":1630,"type":75,"marks":1631},"In most cases, all you have to do to open a high-yield savings account is fill out a simple application, make a minimum deposit, and maintain a minimum account balance. It’s not a lot of work considering the reward: an account that pays a much higher rate of interest than your standard savings account. Of course, high-yield savings accounts are not without their downsides. Be sure to consider the pros and cons — and your personal savings goals — before you open your own.",[1632],{"type":82,"attrs":1633},{"color":919},{"type":71,"content":1635},[1636,1641,1648],{"text":1637,"type":75,"marks":1638},"Ready to explore high-yield savings accounts? You can browse all kinds of savings accounts and other financial products on ",[1639],{"type":82,"attrs":1640},{"color":919},{"text":733,"type":75,"marks":1642},[1643,1645,1647],{"type":103,"attrs":1644},{"href":737,"uuid":106,"anchor":106,"target":107,"linktype":108},{"type":82,"attrs":1646},{"color":1047},{"type":112},{"text":1649,"type":75,"marks":1650},". Get rates, peruse eligibility requirements, and compare and contrast the accounts that best suit you. ",[1651],{"type":82,"attrs":1652},{"color":919},{"type":71,"content":1654},[1655],{"text":749,"type":75,"marks":1656},[1657,1659],{"type":78,"attrs":1658},{"class":80},{"type":82,"attrs":1660},{"color":919},{"type":71,"content":1662},[1663],{"text":1664,"type":75,"marks":1665},"Information in this blog, including the rates advertised, are current as of 05/08/2023 and subject to change.",[1666,1668],{"type":78,"attrs":1667},{"class":80},{"type":82,"attrs":1669},{"color":919},{"type":68,"content":1671},[1672],{"type":71},"\u003C!--#storyblok#{\"name\": \"Typography\", \"space\": \"157494\", \"uid\": \"a64c4df0-154e-4c12-b867-678d292709f4\", \"id\": \"651798207\"}-->","\u003C!--#storyblok#{\"name\": \"Column\", \"space\": \"157494\", \"uid\": \"c286affa-ee04-4348-8508-6e9f77932903\", \"id\": 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\"157494\", \"uid\": \"d87937d9-6d46-4da0-813d-437561563b18\", \"id\": \"651798207\"}-->","\u003C!--#storyblok#{\"name\": \"BackToTop\", \"space\": \"157494\", \"uid\": \"c390fb05-75db-44ae-af73-2bbd7c809b57\", \"id\": \"651798207\"}-->",{"id":106,"alt":106,"name":18,"focus":106,"title":106,"filename":18,"copyright":106,"fieldtype":808},"\u003C!--#storyblok#{\"name\": \"Grid\", \"space\": \"157494\", \"uid\": \"33d3a06b-b58c-487e-92e7-fc588a9c1c78\", \"id\": \"651798207\"}-->","https://www.marketplace.navient.com/blog/pros-and-cons-of-high-yield-savings-account/","\u003C!--#storyblok#{\"name\": \"BlogPost\", \"space\": \"157494\", \"uid\": \"24614723-3c23-4d4f-990b-c49a1b45edce\", \"id\": \"651798207\"}-->","pros-and-cons-of-high-yield-savings-account","navient_marketplace/blog/pros-and-cons-of-high-yield-savings-account",30,[],"7bf27d03-2663-414d-bb97-348ad770d38d","2023-05-10T19:30:35.871Z",[],{"name":1729,"created_at":1730,"published_at":1731,"updated_at":1732,"id":1733,"uuid":1734,"content":1735,"slug":2468,"full_slug":2469,"sort_by_date":106,"position":2470,"tag_list":2471,"is_startpage":45,"parent_id":867,"meta_data":106,"group_id":2472,"first_published_at":2473,"release_id":106,"lang":870,"path":106,"alternates":2474,"default_full_slug":106,"translated_slugs":106},"What is a High-Yield Savings Account?","2025-04-07T18:31:38.064Z","2025-12-26T13:45:15.878Z","2025-12-26T13:45:15.950Z",651798210,"8f51e816-5b87-4a68-9eb1-a804ecebb9d9",{"seo":1736,"_uid":20,"body":1739,"author":1748,"category":859,"featured":45,"component":860,"canonicalTag":2466,"_editable":2467},{"_uid":15,"title":1737,"plugin":17,"og_image":18,"og_title":18,"description":1738,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"What is a High-Yield Savings Account? - Navient Marketplace","What is a high-yield savings account? It's a savings account that offers a higher APY than traditional savings accounts. Is it right for you? Find out here.",[1740,1750,2454],{"id":23,"_uid":885,"image":1741,"intro":1742,"author":1743,"classes":1744,"category":18,"featured":45,"blogTitle":1729,"component":46,"imageLink":1747,"blendImage":45,"authorRoute":1748,"publishedDate":896,"backgroundColor":50,"_editable":1749},"//a.storyblok.com/f/110029/3500x2188/7450d34be0/what-is-a-high-yield-savings-account.svg","A high-yield savings account is one of the best tools for reaching your short-term financial goals.","Natasha Khullar Relph",[1745],{"_uid":891,"component":31,"titleColor":32,"dateClasses":33,"titleClasses":892,"authorClasses":35,"subtitleColor":36,"subtitleClasses":38,"dateMobileClasses":39,"titleMobileClasses":40,"authorMobileClasses":41,"featuredMobileClasses":42,"subtitleMobileClasses":43,"_editable":1746},"\u003C!--#storyblok#{\"name\": \"BlogHeroStyle\", \"space\": \"157494\", \"uid\": \"6bc0d925-925b-40e2-8cb5-ac30d0086187\", \"id\": \"651798210\"}-->","/images/what-is-a-high-yield-savings-account.png","natasha-khullar-relph","\u003C!--#storyblok#{\"name\": \"BlogHero\", \"space\": \"157494\", \"uid\": \"02557530-adb9-49fb-9319-277497a70cb8\", \"id\": \"651798210\"}-->",{"_uid":899,"bloks":1751,"classes":830,"component":831,"mobileClasses":18,"containerContent":2452,"_editable":2453},[1752],{"_uid":902,"bloks":1753,"classes":18,"justify":776,"component":828,"mobileClasses":18,"_editable":2451},[1754,2425],{"lg":59,"md":59,"sm":60,"_uid":905,"cols":60,"bloks":1755,"alignSelf":776,"component":777,"_editable":2424},[1756],{"_uid":908,"color":65,"classes":66,"content":18,"richText":1757,"component":769,"mobileClasses":770,"enableRichText":771,"richTextMobile":2420,"_editable":2423},{"type":68,"content":1758},[1759,1767,1788,1816,1825,1846,1855,1932,1941,2003,2012,2019,2027,2034,2041,2097,2104,2112,2146,2153,2160,2168,2175,2183,2190,2237,2245,2252,2259,2266,2274,2281,2316,2324,2331,2339,2346,2354,2361,2368,2376,2383,2402,2411],{"type":71,"content":1760},[1761],{"text":74,"type":75,"marks":1762},[1763,1765],{"type":78,"attrs":1764},{"class":80},{"type":82,"attrs":1766},{"color":84},{"type":71,"content":1768},[1769,1774,1783],{"text":1770,"type":75,"marks":1771},"If your finances are feeling the hit from the COVID-19 pandemic — and subsequent recession — you’re not alone. Most folks would say that if there was an easy option to grow their savings, they’d take it in a heartbeat. Yet, ",[1772],{"type":82,"attrs":1773},{"color":84},{"text":1775,"type":75,"marks":1776},"research from Insider Intelligence",[1777,1780,1782],{"type":103,"attrs":1778},{"href":1779,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.insiderintelligence.com/content/savers-larger-banks-higher-yielding-accounts",{"type":82,"attrs":1781},{"color":106},{"type":112},{"text":1784,"type":75,"marks":1785}," shows that more than half of Americans are missing out on additional earnings by not utilizing high-yield accounts. ",[1786],{"type":82,"attrs":1787},{"color":106},{"type":71,"content":1789},[1790,1795,1804,1809,1811],{"text":1791,"type":75,"marks":1792},"Thanks to recent Federal Reserve interest rate increases, the average annual percentage yield (APY) on high-yield savings accounts has gone up — from 0.5% in early 2022 to more than 3% at the end of 2022. But not everyone’s taking advantage. According to a ",[1793],{"type":82,"attrs":1794},{"color":84},{"text":1796,"type":75,"marks":1797},"2021 survey from the Federal Deposit Insurance Corporation (FDIC)",[1798,1801,1803],{"type":103,"attrs":1799},{"href":1800,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.fdic.gov/analysis/household-survey/index.html",{"type":82,"attrs":1802},{"color":106},{"type":112},{"text":1805,"type":75,"marks":1806},", nearly 6 million households didn’t have a savings account at all. And NextAdvisor’s research shows that only 21% of Americans report taking advantage of high-interest savings accounts — something many ",[1807],{"type":82,"attrs":1808},{"color":106},{"text":1810,"type":75},"personal finance experts believe",{"text":1812,"type":75,"marks":1813}," is a missed opportunity. Here’s why. ",[1814],{"type":82,"attrs":1815},{"color":106},{"type":119,"attrs":1817,"content":1818},{"level":121},[1819],{"text":1820,"type":75,"marks":1821},"What are high-yield savings accounts? ",[1822,1823],{"type":127},{"type":82,"attrs":1824},{"color":84},{"type":71,"content":1826},[1827,1832,1841],{"text":1828,"type":75,"marks":1829},"A high-yield savings account is one of the best tools for reaching your short-term financial goals. Essentially, it's a type of savings account that pays interest on the funds you deposit. The amount of interest you earn depends on the bank and your deposit balance, but high-yield savings accounts tend to pay ",[1830],{"type":82,"attrs":1831},{"color":84},{"text":1833,"type":75,"marks":1834},"15 to 25 times",[1835,1838,1840],{"type":103,"attrs":1836},{"href":1837,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.fdic.gov/resources/bankers/national-rates/",{"type":82,"attrs":1839},{"color":106},{"type":112},{"text":1842,"type":75,"marks":1843}," more interest than traditional savings accounts. What’s more, high-yield savings accounts tend to be more reliable than investing your money in the stock market, for example, and more flexible than putting it away in a CD (Certificate of Deposit) account. If your goal is maximizing your returns in a low-risk environment where you can easily access your money at any time, a high-yield savings account may be for you. ",[1844],{"type":82,"attrs":1845},{"color":106},{"type":119,"attrs":1847,"content":1848},{"level":121},[1849],{"text":1850,"type":75,"marks":1851},"Benefits of a high-yield savings account ",[1852,1853],{"type":127},{"type":82,"attrs":1854},{"color":84},{"type":336,"content":1856},[1857,1872,1887,1902,1917],{"type":339,"content":1858},[1859],{"type":71,"content":1860},[1861,1867],{"text":1862,"type":75,"marks":1863},"High-yield savings accounts have higher interest rates than traditional savings accounts.",[1864,1865],{"type":127},{"type":82,"attrs":1866},{"color":84},{"text":1868,"type":75,"marks":1869}," When it comes to your savings, the higher the interest rate, the better. Most high-yield savings accounts boast interest rates up to 25 times higher than traditional accounts. And even an increase in a single percentage point can translate to a significant sum over the course of a year.",[1870],{"type":82,"attrs":1871},{"color":106},{"type":339,"content":1873},[1874],{"type":71,"content":1875},[1876,1882],{"text":1877,"type":75,"marks":1878},"High-yield savings accounts are flexible",[1879,1880],{"type":127},{"type":82,"attrs":1881},{"color":84},{"text":1883,"type":75,"marks":1884},". Unlike other accounts that offer high rates of return, a high-yield savings account doesn’t require you to lock your money in for a set term. For example, a CD account will offer similar interest rates, but will charge an early withdrawal fee if you take money out before the end of the term. A high-yield savings account is different in that there are no penalties if you make a withdrawal. (You may, however, be limited in the number of withdrawals and deposits that you can make over a set period of time.)",[1885],{"type":82,"attrs":1886},{"color":106},{"type":339,"content":1888},[1889],{"type":71,"content":1890},[1891,1897],{"text":1892,"type":75,"marks":1893},"High-yield savings accounts are better for meeting short-term savings goals.",[1894,1895],{"type":127},{"type":82,"attrs":1896},{"color":84},{"text":1898,"type":75,"marks":1899}," If you’re trying to make a big purchase within the next five or so years — like putting a down payment on a car or house — high-yield savings accounts represent a lower-risk alternative to other investment options, like stocks, which can lose value in that time.",[1900],{"type":82,"attrs":1901},{"color":106},{"type":339,"content":1903},[1904],{"type":71,"content":1905},[1906,1912],{"text":1907,"type":75,"marks":1908},"High-yield savings accounts are perfect for an emergency fund.",[1909,1910],{"type":127},{"type":82,"attrs":1911},{"color":84},{"text":1913,"type":75,"marks":1914}," A high-yield savings account is an ideal place to store funds that you don't need immediately, like an emergency fund. You'll earn interest on your money and be able to withdraw it at any time.",[1915],{"type":82,"attrs":1916},{"color":106},{"type":339,"content":1918},[1919],{"type":71,"content":1920},[1921,1927],{"text":1922,"type":75,"marks":1923},"High-yield savings accounts are great for storing a windfall",[1924,1925],{"type":127},{"type":82,"attrs":1926},{"color":84},{"text":1928,"type":75,"marks":1929},". When you get a tax return or a stimulus check, it can be tempting to spend it, even if you don’t have a pressing need. If there’s no expense that requires your immediate attention, why not put it in a high-yield savings account? When you do finally have a reason to spend it, there’s a chance it may have grown even bigger. ",[1930],{"type":82,"attrs":1931},{"color":106},{"type":119,"attrs":1933,"content":1934},{"level":121},[1935],{"text":1936,"type":75,"marks":1937},"Drawbacks of a high-yield savings account",[1938,1939],{"type":127},{"type":82,"attrs":1940},{"color":84},{"type":336,"content":1942},[1943,1958,1973,1988],{"type":339,"content":1944},[1945],{"type":71,"content":1946},[1947,1953],{"text":1948,"type":75,"marks":1949},"High-yield savings accounts are not ideal for everyday banking",[1950,1951],{"type":127},{"type":82,"attrs":1952},{"color":84},{"text":1954,"type":75,"marks":1955},". Federal law allows you to withdraw money from a high-yield savings account up to six times in a single month without paying fees. To avoid paying fees, your everyday cash is best stored in a checking account, while money you won’t need immediately, like an emergency fund, is better kept in a high-yield savings account.",[1956],{"type":82,"attrs":1957},{"color":106},{"type":339,"content":1959},[1960],{"type":71,"content":1961},[1962,1968],{"text":1963,"type":75,"marks":1964},"High-yield savings generally have stricter requirements than standard savings accounts",[1965,1966],{"type":127},{"type":82,"attrs":1967},{"color":84},{"text":1969,"type":75,"marks":1970},". Along with transfer and withdrawal limits, higher initial deposits and minimum balances are just a few examples of policies you aren’t likely to face with a traditional savings account.",[1971],{"type":82,"attrs":1972},{"color":106},{"type":339,"content":1974},[1975],{"type":71,"content":1976},[1977,1983],{"text":1978,"type":75,"marks":1979},"High-yield savings accounts are not the best for long-term goals.",[1980,1981],{"type":127},{"type":82,"attrs":1982},{"color":84},{"text":1984,"type":75,"marks":1985}," Though you’ll earn more interest than you will with a traditional savings account, interest earned in a high-yield savings account likely won’t even be enough to keep up with inflation. If you’re saving for retirement, for example, there are better investment vehicles out there.",[1986],{"type":82,"attrs":1987},{"color":106},{"type":339,"content":1989},[1990],{"type":71,"content":1991},[1992,1998],{"text":1993,"type":75,"marks":1994},"High-yield savings accounts are fluctuating.",[1995,1996],{"type":127},{"type":82,"attrs":1997},{"color":84},{"text":1999,"type":75,"marks":2000}," Interest rates aren't guaranteed. While your money is safe in a high-yield savings account, the bank can change your interest rate at any point. There are no federal regulations that protect you from a lower interest rate if rates go down, so you could earn less than advertised.",[2001],{"type":82,"attrs":2002},{"color":106},{"type":119,"attrs":2004,"content":2005},{"level":121},[2006],{"text":2007,"type":75,"marks":2008},"How does a high-yield savings account work? ",[2009,2010],{"type":127},{"type":82,"attrs":2011},{"color":84},{"type":71,"content":2013},[2014],{"text":2015,"type":75,"marks":2016},"Many financial services institutions offer high-yield savings accounts, including traditional banks, some credit unions, and online banks. For the most part, these accounts work just like traditional savings accounts: you can make direct deposits, withdraw cash, and manage your accounts through the bank’s website or mobile app. Where high-yield savings accounts differ is in the interest rates, which tend to be higher than those on regular savings accounts. High-yield savings accounts also have more restrictions on how often you can withdraw your money.  ",[2017],{"type":82,"attrs":2018},{"color":84},{"type":119,"attrs":2020,"content":2021},{"level":183},[2022],{"text":2023,"type":75,"marks":2024},"Opening a high-yield savings account",[2025],{"type":82,"attrs":2026},{"color":84},{"type":71,"content":2028},[2029],{"text":2030,"type":75,"marks":2031},"If your existing bank offers high-yield savings accounts, applying for one is simply a matter of logging into your online banking portal. The application process typically takes ten to fifteen minutes.",[2032],{"type":82,"attrs":2033},{"color":84},{"type":71,"content":2035},[2036],{"text":2037,"type":75,"marks":2038},"If you’re opening a high-yield savings account with a new bank, the application may take more time. You can either walk into a brick-and-mortar bank or apply for the account online. You’ll likely be asked to provide personal information and documents, including your:",[2039],{"type":82,"attrs":2040},{"color":84},{"type":336,"content":2042},[2043,2052,2061,2070,2079,2088],{"type":339,"content":2044},[2045],{"type":71,"content":2046},[2047],{"text":2048,"type":75,"marks":2049},"Legal name",[2050],{"type":82,"attrs":2051},{"color":84},{"type":339,"content":2053},[2054],{"type":71,"content":2055},[2056],{"text":2057,"type":75,"marks":2058},"Official identification document, such as a driver’s license",[2059],{"type":82,"attrs":2060},{"color":106},{"type":339,"content":2062},[2063],{"type":71,"content":2064},[2065],{"text":2066,"type":75,"marks":2067},"Social Security Number",[2068],{"type":82,"attrs":2069},{"color":106},{"type":339,"content":2071},[2072],{"type":71,"content":2073},[2074],{"text":2075,"type":75,"marks":2076},"Date of birth",[2077],{"type":82,"attrs":2078},{"color":106},{"type":339,"content":2080},[2081],{"type":71,"content":2082},[2083],{"text":2084,"type":75,"marks":2085},"Address",[2086],{"type":82,"attrs":2087},{"color":106},{"type":339,"content":2089},[2090],{"type":71,"content":2091},[2092],{"text":2093,"type":75,"marks":2094},"Primary bank account information",[2095],{"type":82,"attrs":2096},{"color":106},{"type":71,"content":2098},[2099],{"text":2100,"type":75,"marks":2101},"You may also be asked to make an opening deposit once your account is active.",[2102],{"type":82,"attrs":2103},{"color":84},{"type":119,"attrs":2105,"content":2106},{"level":183},[2107],{"text":2108,"type":75,"marks":2109},"Withdrawals and transfers",[2110],{"type":82,"attrs":2111},{"color":84},{"type":71,"content":2113},[2114,2119,2127,2132,2141],{"text":2115,"type":75,"marks":2116},"Some financial institutions require a minimum deposit of $100 or more to open a high-yield savings account. Once that’s done, you can withdraw cash or make electronic or wire transfers, but only up to six times per month. This is due to a federal law known as ",[2117],{"type":82,"attrs":2118},{"color":84},{"text":1257,"type":75,"marks":2120},[2121,2124,2126],{"type":103,"attrs":2122},{"href":2123,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.federalreserve.gov/boarddocs/supmanual/cch/int_depos.pdf",{"type":82,"attrs":2125},{"color":106},{"type":112},{"text":2128,"type":75,"marks":2129},". Regulation D was ",[2130],{"type":82,"attrs":2131},{"color":106},{"text":2133,"type":75,"marks":2134},"lifted during the Covid-19 pandemic",[2135,2138,2140],{"type":103,"attrs":2136},{"href":2137,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.investopedia.com/this-government-regulation-restricts-how-often-you-can-move-money-out-of-your-savings-account-4589978",{"type":82,"attrs":2139},{"color":106},{"type":112},{"text":2142,"type":75,"marks":2143},", but some banks still adhere to the six-withdrawal limit. If you withdraw too often, the bank or credit union can convert your account into a checking account. ",[2144],{"type":82,"attrs":2145},{"color":106},{"type":119,"attrs":2147,"content":2148},{"level":183},[2149],{"text":203,"type":75,"marks":2150},[2151],{"type":82,"attrs":2152},{"color":84},{"type":71,"content":2154},[2155],{"text":2156,"type":75,"marks":2157},"Annual Percentage Yield (APY) is the interest you earn on your money. Unlike with traditional bank accounts or online savings accounts, rates on high-yield accounts tend to exceed the national average. They also use a type of interest called compound interest. That means that any interest you make will be tacked onto the amount of money you initially deposited. You’ll then make future interest on that full amount. Compound interest is one of the best ways to grow your money fast. ",[2158],{"type":82,"attrs":2159},{"color":84},{"type":119,"attrs":2161,"content":2162},{"level":121},[2163],{"text":1403,"type":75,"marks":2164},[2165,2166],{"type":127},{"type":82,"attrs":2167},{"color":84},{"type":71,"content":2169},[2170],{"text":2171,"type":75,"marks":2172},"To find the best high-yield savings accounts, you’ll need to understand the nitty gritty of how they work. Here’s what to watch for. ",[2173],{"type":82,"attrs":2174},{"color":84},{"type":119,"attrs":2176,"content":2177},{"level":183},[2178],{"text":2179,"type":75,"marks":2180},"Interest rate",[2181],{"type":82,"attrs":2182},{"color":84},{"type":71,"content":2184},[2185],{"text":2186,"type":75,"marks":2187},"The higher the APY, the more money you earn on your savings. This is the most important factor in opening a high-yield account, so be sure to ask all the right questions. Here are a few of the big ones:",[2188],{"type":82,"attrs":2189},{"color":84},{"type":336,"content":2191},[2192,2201,2210,2219,2228],{"type":339,"content":2193},[2194],{"type":71,"content":2195},[2196],{"text":2197,"type":75,"marks":2198},"Have you shopped around with other financial institutions to make sure you’re getting the highest rate?",[2199],{"type":82,"attrs":2200},{"color":84},{"type":339,"content":2202},[2203],{"type":71,"content":2204},[2205],{"text":2206,"type":75,"marks":2207},"If you’re eyeing a high APY, have you read the fine print? Is it just a promotional rate that will expire? ",[2208],{"type":82,"attrs":2209},{"color":106},{"type":339,"content":2211},[2212],{"type":71,"content":2213},[2214],{"text":2215,"type":75,"marks":2216},"Will you need to maintain a certain minimum balance to earn those higher rates? ",[2217],{"type":82,"attrs":2218},{"color":106},{"type":339,"content":2220},[2221],{"type":71,"content":2222},[2223],{"text":2224,"type":75,"marks":2225},"What will your annual interest earnings actually be? ",[2226],{"type":82,"attrs":2227},{"color":106},{"type":339,"content":2229},[2230],{"type":71,"content":2231},[2232],{"text":2233,"type":75,"marks":2234},"How frequently is your interest compounded? ",[2235],{"type":82,"attrs":2236},{"color":106},{"type":119,"attrs":2238,"content":2239},{"level":183},[2240],{"text":2241,"type":75,"marks":2242},"Minimum balance requirements and initial deposit",[2243],{"type":82,"attrs":2244},{"color":84},{"type":71,"content":2246},[2247],{"text":2248,"type":75,"marks":2249},"Different banks have different opening deposit requirements. Many also require you to maintain a minimum sum within the account to keep it open. Make sure this is an amount you feel comfortable with, since going below the minimum threshold can trigger fees or lower your interest rate. ",[2250],{"type":82,"attrs":2251},{"color":84},{"type":119,"attrs":2253,"content":2254},{"level":183},[2255],{"text":233,"type":75,"marks":2256},[2257],{"type":82,"attrs":2258},{"color":84},{"type":71,"content":2260},[2261],{"text":2262,"type":75,"marks":2263},"Another big consideration with high-yield accounts is fees. After all, what’s the point of earning more on your savings if you’re going to pay it all out in monthly fees? Look for high-yield savings accounts that don’t charge monthly maintenance fees. You’ll also want to look out for any monthly service fees the bank or credit union might charge for going below the minimum balance, exceeding the six-withdrawals limit, or going into overdraft.",[2264],{"type":82,"attrs":2265},{"color":84},{"type":119,"attrs":2267,"content":2268},{"level":183},[2269],{"text":2270,"type":75,"marks":2271},"Provider",[2272],{"type":82,"attrs":2273},{"color":84},{"type":71,"content":2275},[2276],{"text":2277,"type":75,"marks":2278},"A number of big national banks such as Marcus by Goldman Sachs, CapitalOne, and American Express all offer high-yield savings accounts. If you already bank with one of these providers, you might consider opening your new account with them. This can streamline your online banking and make it easier to see all your accounts in one place. ",[2279],{"type":82,"attrs":2280},{"color":84},{"type":71,"content":2282},[2283,2288,2297,2302,2311],{"text":2284,"type":75,"marks":2285},"If you’re unhappy with your current bank or think you can find a better interest rate elsewhere, however, it may be better to find a new provider. Make sure any financial institution you consider is a member of the ",[2286],{"type":82,"attrs":2287},{"color":84},{"text":2289,"type":75,"marks":2290},"FDIC",[2291,2294,2296],{"type":103,"attrs":2292},{"href":2293,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.fdic.gov",{"type":82,"attrs":2295},{"color":106},{"type":112},{"text":2298,"type":75,"marks":2299}," and/or ",[2300],{"type":82,"attrs":2301},{"color":106},{"text":2303,"type":75,"marks":2304},"National Credit Union Association",[2305,2308,2310],{"type":103,"attrs":2306},{"href":2307,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://ncua.gov",{"type":82,"attrs":2309},{"color":106},{"type":112},{"text":2312,"type":75,"marks":2313}," (NCUA), both of which protect you against bank failures. (Look for “Member FDIC” or “member NCUA” on their website to make sure.)",[2314],{"type":82,"attrs":2315},{"color":106},{"type":119,"attrs":2317,"content":2318},{"level":121},[2319],{"text":658,"type":75,"marks":2320},[2321,2322],{"type":127},{"type":82,"attrs":2323},{"color":84},{"type":71,"content":2325},[2326],{"text":2327,"type":75,"marks":2328},"High-yield savings accounts aren’t for everyone. Here are some alternatives worth considering. ",[2329],{"type":82,"attrs":2330},{"color":84},{"type":119,"attrs":2332,"content":2333},{"level":183},[2334],{"text":667,"type":75,"marks":2335},[2336,2337],{"type":127},{"type":82,"attrs":2338},{"color":84},{"type":71,"content":2340},[2341],{"text":2342,"type":75,"marks":2343},"Money market accounts are similar to high-yield savings accounts in that they’re FDIC-insured and their interest rates often exceed regular savings account rates. You can deposit cash and make ATM withdrawals. One big difference is that many money market accounts also provide a debit card and allow you to write checks, which can make them a better choice for those who prefer to pay their bills manually. (Disclaimer: you’ll only be able to write up to six checks per month, as mandated by Regulation D.)",[2344],{"type":82,"attrs":2345},{"color":84},{"type":119,"attrs":2347,"content":2348},{"level":183},[2349],{"text":690,"type":75,"marks":2350},[2351,2352],{"type":127},{"type":82,"attrs":2353},{"color":84},{"type":71,"content":2355},[2356],{"text":2357,"type":75,"marks":2358},"A CD is another useful tool for short-term financial planning. It’s a type of investment account that locks up your money for a specific period of time — often three to five years — at which point you can withdraw it along with any interest earned. In the interim, however, you’re not allowed to touch your savings. High-yield savings accounts don’t have these restrictions: they operate much like regular deposit accounts, allowing you to make deposits and withdrawals as needed while also offering higher rates than traditional savings accounts.",[2359],{"type":82,"attrs":2360},{"color":84},{"type":71,"content":2362},[2363],{"text":2364,"type":75,"marks":2365},"Though you won’t be able to access your money in a CD account for the length of the term, you’re likely to earn more in interest over that term than you would have with a high-yield savings account. Rates are also fixed with a CD account, not fluctuating like a high-yield savings account, so it’s a more predictable return on investment. ",[2366],{"type":82,"attrs":2367},{"color":84},{"type":119,"attrs":2369,"content":2370},{"level":121},[2371],{"text":713,"type":75,"marks":2372},[2373,2374],{"type":127},{"type":82,"attrs":2375},{"color":84},{"type":71,"content":2377},[2378],{"text":2379,"type":75,"marks":2380},"High-yield savings accounts are one of the best tools for protecting and growing your savings without sacrificing access to your money. Because they offer higher interest rates than you might find on a traditional savings account, they’re a great way to close the final gaps to reach your short-term financial goals. ",[2381],{"type":82,"attrs":2382},{"color":84},{"type":71,"content":2384},[2385,2390,2397],{"text":2386,"type":75,"marks":2387},"You can open a high-interest savings account with any number of financial institutions, but each offers different rates, fees, and minimum balance requirements. To rate-shop efficiently, consider using ",[2388],{"type":82,"attrs":2389},{"color":84},{"text":733,"type":75,"marks":2391},[2392,2394,2396],{"type":103,"attrs":2393},{"href":737,"uuid":106,"anchor":106,"target":107,"linktype":108},{"type":82,"attrs":2395},{"color":106},{"type":112},{"text":2398,"type":75,"marks":2399},", a powerful online platform that lets you browse some of the best banks in the business. Use it to shop around, compare rates, and find the best high-yield savings account for you.",[2400],{"type":82,"attrs":2401},{"color":106},{"type":71,"content":2403},[2404],{"text":2405,"type":75,"marks":2406},"Disclaimer:",[2407,2409],{"type":78,"attrs":2408},{"class":80},{"type":82,"attrs":2410},{"color":84},{"type":71,"content":2412},[2413],{"text":2414,"type":75,"marks":2415},"This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.",[2416,2418],{"type":78,"attrs":2417},{"class":80},{"type":82,"attrs":2419},{"color":84},{"type":68,"content":2421},[2422],{"type":71},"\u003C!--#storyblok#{\"name\": \"Typography\", \"space\": \"157494\", \"uid\": \"a64c4df0-154e-4c12-b867-678d292709f4\", \"id\": \"651798210\"}-->","\u003C!--#storyblok#{\"name\": \"Column\", \"space\": \"157494\", \"uid\": \"c286affa-ee04-4348-8508-6e9f77932903\", \"id\": 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\"BackToTop\", \"space\": \"157494\", \"uid\": \"c390fb05-75db-44ae-af73-2bbd7c809b57\", \"id\": \"651798210\"}-->",{"id":106,"alt":106,"name":18,"focus":106,"title":106,"filename":18,"copyright":106,"fieldtype":808},"\u003C!--#storyblok#{\"name\": \"Grid\", \"space\": \"157494\", \"uid\": \"33d3a06b-b58c-487e-92e7-fc588a9c1c78\", \"id\": \"651798210\"}-->","https://www.marketplace.navient.com/blog/what-is-a-high-yield-savings-account/","\u003C!--#storyblok#{\"name\": \"BlogPost\", \"space\": \"157494\", \"uid\": \"24614723-3c23-4d4f-990b-c49a1b45edce\", \"id\": \"651798210\"}-->","what-is-a-high-yield-savings-account","navient_marketplace/blog/what-is-a-high-yield-savings-account",50,[],"ecae4182-877b-4eed-8f0a-4b9bbb364523","2023-05-10T19:41:16.399Z",[],{"name":2476,"created_at":2477,"published_at":2478,"updated_at":2479,"id":2480,"uuid":2481,"content":2482,"slug":3290,"full_slug":3291,"sort_by_date":106,"position":3292,"tag_list":3293,"is_startpage":45,"parent_id":867,"meta_data":106,"group_id":3294,"first_published_at":3295,"release_id":106,"lang":870,"path":106,"alternates":3296,"default_full_slug":106,"translated_slugs":106},"How to Choose a High-Yield Savings Account","2025-04-07T18:31:39.819Z","2025-12-26T13:45:16.223Z","2025-12-26T13:45:16.251Z",651798211,"25d050c8-73dd-4a39-8be2-433306a8034e",{"seo":2483,"_uid":2487,"body":2488,"author":1748,"category":859,"featured":45,"component":860,"canonicalTag":3288,"_editable":3289},{"_uid":2484,"title":2485,"plugin":17,"og_image":18,"og_title":18,"description":2486,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"e337439f-627f-4ffe-b1ea-513d4b49b751","How to Choose a High-Yield Savings Account - Navient Marketplace","Learn how to choose a high-yield savings account based on your personal finance goals. Interest rates, fees, terms, and more. Here's what you need to know.","48933c4c-21f0-4a99-aa8a-03c5aa2d28b7",[2489,2498,3273],{"id":23,"_uid":2490,"image":2491,"intro":2486,"author":1743,"classes":2492,"category":18,"featured":45,"blogTitle":2476,"component":46,"imageLink":2496,"blendImage":45,"authorRoute":1748,"publishedDate":896,"backgroundColor":50,"_editable":2497},"2584db58-da39-4e41-a1b0-84b2af09dc0e","//a.storyblok.com/f/110029/1481x988/3f616f5c93/how-to-choose-a-high-yield-savings-account.png",[2493],{"_uid":2494,"component":31,"titleColor":32,"dateClasses":33,"titleClasses":892,"authorClasses":35,"subtitleColor":36,"subtitleClasses":38,"dateMobileClasses":39,"titleMobileClasses":40,"authorMobileClasses":41,"featuredMobileClasses":42,"subtitleMobileClasses":43,"_editable":2495},"561851a9-113f-460a-bae9-bd4be68e7081","\u003C!--#storyblok#{\"name\": \"BlogHeroStyle\", \"space\": \"157494\", \"uid\": \"561851a9-113f-460a-bae9-bd4be68e7081\", \"id\": \"651798211\"}-->","/images/how-to-choose-a-high-yield-savings-account.png","\u003C!--#storyblok#{\"name\": \"BlogHero\", \"space\": \"157494\", \"uid\": \"2584db58-da39-4e41-a1b0-84b2af09dc0e\", \"id\": \"651798211\"}-->",{"_uid":2499,"bloks":2500,"classes":830,"component":831,"mobileClasses":18,"containerContent":3271,"_editable":3272},"34209976-7014-4aec-99f2-5b2659036146",[2501],{"_uid":2502,"bloks":2503,"classes":18,"justify":776,"component":828,"mobileClasses":18,"_editable":3270},"d6fe7f6f-f279-4516-9325-cf22cd63338a",[2504,3244],{"lg":59,"md":59,"sm":60,"_uid":2505,"cols":60,"bloks":2506,"alignSelf":776,"component":777,"_editable":3243},"33b17b9d-2cea-4cd9-a840-7d806cacba08",[2507],{"_uid":2508,"color":65,"classes":66,"content":18,"richText":2509,"component":769,"mobileClasses":770,"enableRichText":771,"richTextMobile":3239,"_editable":3242},"1c2fecf4-3e7d-45a3-8cd3-ec01aee640ed",{"type":68,"content":2510},[2511,2519,2526,2534,2581,2589,2623,2630,2637,2645,2652,2661,2668,2677,2697,2704,2713,2720,2733,2753,2774,2783,2790,2799,2806,2815,2836,2845,2866,2873,2882,2889,2950,2957,3047,3056,3063,3072,3106,3115,3122,3131,3138,3146,3167,3175,3195,3203,3222,3230],{"type":71,"content":2512},[2513],{"text":74,"type":75,"marks":2514},[2515,2517],{"type":78,"attrs":2516},{"class":80},{"type":82,"attrs":2518},{"color":919},{"type":71,"content":2520},[2521],{"text":2522,"type":75,"marks":2523},"If you’ve spent any time browsing high-yield savings accounts online, you know that many offer similar annual percentage yields (APY). The difference in rates between top banks is usually a fraction of a percent. So, when rates are fairly similar, how do you choose a high-yield savings account? What else should you look for?",[2524],{"type":82,"attrs":2525},{"color":919},{"type":119,"attrs":2527,"content":2528},{"level":121},[2529],{"text":938,"type":75,"marks":2530},[2531,2532],{"type":127},{"type":82,"attrs":2533},{"color":919},{"type":336,"content":2535},[2536,2545,2554,2563,2572],{"type":339,"content":2537},[2538],{"type":71,"content":2539},[2540],{"text":2541,"type":75,"marks":2542},"A high-yield savings account is an interest-bearing bank account that offers a higher APY than traditional savings accounts. ",[2543],{"type":82,"attrs":2544},{"color":919},{"type":339,"content":2546},[2547],{"type":71,"content":2548},[2549],{"text":2550,"type":75,"marks":2551},"You can open a high-yield savings account at most financial institutions, either in-person or online.",[2552],{"type":82,"attrs":2553},{"color":919},{"type":339,"content":2555},[2556],{"type":71,"content":2557},[2558],{"text":2559,"type":75,"marks":2560},"When choosing an account servicer, it’s important to evaluate fees, penalties, FDIC insurance, minimum balance requirements, minimum opening deposit requirements, withdrawal limits, and overall accessibility. ",[2561],{"type":82,"attrs":2562},{"color":919},{"type":339,"content":2564},[2565],{"type":71,"content":2566},[2567],{"text":2568,"type":75,"marks":2569},"The pros of high-yield savings accounts are that they’re high-interest, secured against financial loss, and relatively accessible.",[2570],{"type":82,"attrs":2571},{"color":919},{"type":339,"content":2573},[2574],{"type":71,"content":2575},[2576],{"text":2577,"type":75,"marks":2578},"The cons of high-yield savings accounts are that their APYs are not fixed, they’re not ideal for building long-term wealth or for everyday banking, and they have stricter requirements than traditional savings accounts. ",[2579],{"type":82,"attrs":2580},{"color":919},{"type":119,"attrs":2582,"content":2583},{"level":121},[2584],{"text":994,"type":75,"marks":2585},[2586,2587],{"type":127},{"type":82,"attrs":2588},{"color":919},{"type":71,"content":2590},[2591,2596,2605,2610,2618],{"text":2592,"type":75,"marks":2593},"A high-yield savings account is a savings account that allows you to earn compound interest on the funds you deposit. Some traditional savings accounts do this, but their rates aren’t nearly as high. The national average APY for traditional savings accounts ",[2594],{"type":82,"attrs":2595},{"color":919},{"text":2597,"type":75,"marks":2598},"is 0.39%",[2599,2602,2604],{"type":103,"attrs":2600},{"href":2601,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.nerdwallet.com/best/banking/high-yield-online-savings-accounts#",{"type":82,"attrs":2603},{"color":1047},{"type":112},{"text":2606,"type":75,"marks":2607},". High-yield savings accounts, on the other hand, offer ",[2608],{"type":82,"attrs":2609},{"color":919},{"text":2611,"type":75,"marks":2612},"upwards of 4.0% APY",[2613,2615,2617],{"type":103,"attrs":2614},{"href":142,"uuid":106,"anchor":106,"target":107,"linktype":108},{"type":82,"attrs":2616},{"color":1047},{"type":112},{"text":2619,"type":75,"marks":2620},".",[2621],{"type":82,"attrs":2622},{"color":919},{"type":71,"content":2624},[2625],{"text":2626,"type":75,"marks":2627},"So how does that affect your savings? Let’s say you open a high-yield online savings account with a 4.0% APY. In this example, you deposit $20,000, then make regular monthly deposits of $200. After five years, you could have $5,568.86 in total interest earned. Between that and your regular deposits, you’d end up with $37,568.86 in savings, provided that the interest rate stayed the same throughout those five years.",[2628],{"type":82,"attrs":2629},{"color":919},{"type":71,"content":2631},[2632],{"text":2633,"type":75,"marks":2634},"Now, if you had put those same deposit amounts into a traditional bank account, your savings would look very different. After five years at a 0.33% APY, you would have $32,429 in total savings, and only $429 would be interest earned. That means you’d miss out on $5,136 in total interest earnings simply because you stored your money in a different account type. ",[2635],{"type":82,"attrs":2636},{"color":919},{"type":71,"content":2638},[2639],{"text":2640,"type":75,"marks":2641},"*Hypothetical scenario, results may vary.",[2642,2643],{"type":1334},{"type":82,"attrs":2644},{"color":919},{"type":71,"content":2646},[2647],{"text":2648,"type":75,"marks":2649},"While high-yield savings accounts offer some pretty strong benefits, they’re not without disadvantages. Generally, they’re a little more restrictive than traditional savings accounts. High-yield accounts may require monthly fees, minimum balances, or a minimum deposit to open them. Some may also put a limit on your monthly transfers or withdrawals. ",[2650],{"type":82,"attrs":2651},{"color":919},{"type":119,"attrs":2653,"content":2654},{"level":121},[2655],{"text":2656,"type":75,"marks":2657},"How to choose a high-yield savings account ",[2658,2659],{"type":127},{"type":82,"attrs":2660},{"color":919},{"type":71,"content":2662},[2663],{"text":2664,"type":75,"marks":2665},"Picking a high-yield savings account isn’t just about APY. You’ll want to check for other features, too, like easy access to your money and a guarantee that your cash will be kept safe. Here’s what you should look for if you’re shopping around for a high-yield savings account.",[2666],{"type":82,"attrs":2667},{"color":919},{"type":119,"attrs":2669,"content":2670},{"level":183},[2671],{"text":2672,"type":75,"marks":2673},"1. FDIC insurance",[2674,2675],{"type":127},{"type":82,"attrs":2676},{"color":1031},{"type":71,"content":2678},[2679,2684,2692],{"text":2680,"type":75,"marks":2681},"FDIC stands for “Federal Deposit Insurance Corporation.” This is the organization that insures your money against loss in case of bank failure. Most top high-yield accounts are ",[2682],{"type":82,"attrs":2683},{"color":919},{"text":2685,"type":75,"marks":2686},"FDIC-insured up to $250,000",[2687,2689,2691],{"type":103,"attrs":2688},{"href":1165,"uuid":106,"anchor":106,"target":107,"linktype":108},{"type":82,"attrs":2690},{"color":1047},{"type":112},{"text":2693,"type":75,"marks":2694}," per depositor. This means that if the bank fails, you’re eligible to recoup up to $250,000 of any lost savings. You can tell a financial institution is insured by looking for the “Member FDIC” badge on the bank’s website. ",[2695],{"type":82,"attrs":2696},{"color":919},{"type":71,"content":2698},[2699],{"text":2700,"type":75,"marks":2701},"Note that many credit unions are also insured. Look for the National Credit Union Administration (NCUA) badge on the institution's website to make sure.",[2702],{"type":82,"attrs":2703},{"color":919},{"type":119,"attrs":2705,"content":2706},{"level":183},[2707],{"text":2708,"type":75,"marks":2709},"2. Required initial deposit",[2710,2711],{"type":127},{"type":82,"attrs":2712},{"color":1031},{"type":71,"content":2714},[2715],{"text":2716,"type":75,"marks":2717},"Some high-yield savings accounts require an initial minimum deposit. This will be the amount of money you need to deposit in order to open the account. It could be as low as $25 or up to $1,000 or more. You might assume that higher-APY banks require higher minimum deposits, but this isn’t always the case. Many high-yield savings accounts with APYs of 3.0% or higher don’t require any minimum deposit to earn interest.",[2718],{"type":82,"attrs":2719},{"color":919},{"type":119,"attrs":2721,"content":2722},{"level":183},[2723,2729],{"text":2724,"type":75,"marks":2725},"3. APY",[2726,2727],{"type":127},{"type":82,"attrs":2728},{"color":1031},{"text":765,"type":75,"marks":2730},[2731],{"type":82,"attrs":2732},{"color":1031},{"type":71,"content":2734},[2735,2740,2748],{"text":2736,"type":75,"marks":2737},"The “",[2738],{"type":82,"attrs":2739},{"color":919},{"text":100,"type":75,"marks":2741},[2742,2745,2747],{"type":103,"attrs":2743},{"href":2744,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.nerdwallet.com/article/banking/what-is-apy",{"type":82,"attrs":2746},{"color":1047},{"type":112},{"text":2749,"type":75,"marks":2750},"” refers to the percentage of your savings that you’ll earn back in interest each year. APY factors in the account’s interest rate as well as other relevant factors, like fees and compounding frequency, to give you a clear idea of how much you’ll actually earn.",[2751],{"type":82,"attrs":2752},{"color":919},{"type":71,"content":2754},[2755,2760,2769],{"text":2756,"type":75,"marks":2757},"APY is a better metric for evaluating high-yield accounts than interest rates alone. That’s because Interest can compound daily, monthly, or weekly. When you see a bank advertising a 4.0% interest rate, for example, you won’t know how much you stand to earn unless you know ",[2758],{"type":82,"attrs":2759},{"color":919},{"text":2761,"type":75,"marks":2762},"how often it compounds",[2763,2766,2768],{"type":103,"attrs":2764},{"href":2765,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.moneyrates.com/savings/interest-compounded-daily-vs-monthly.htm",{"type":82,"attrs":2767},{"color":1047},{"type":112},{"text":2770,"type":75,"marks":2771},". But if you see a bank advertising a 4.0% APY, you can be confident that, no matter how often interest compounds, by the end of the year, you will have earned 4% interest on your money. ",[2772],{"type":82,"attrs":2773},{"color":919},{"type":119,"attrs":2775,"content":2776},{"level":183},[2777],{"text":2778,"type":75,"marks":2779},"4. Minimum balance",[2780,2781],{"type":127},{"type":82,"attrs":2782},{"color":1031},{"type":71,"content":2784},[2785],{"text":2786,"type":75,"marks":2787},"Some banks not only ask for a minimum deposit, but also require you to maintain a minimum balance. This is the amount of savings that you’ll need to keep in your account at all times. Failure to maintain the required minimum balance could result in a penalty or fee, a pause on interest earnings, or even the closure of your account.",[2788],{"type":82,"attrs":2789},{"color":919},{"type":119,"attrs":2791,"content":2792},{"level":183},[2793],{"text":2794,"type":75,"marks":2795},"5. Fees and penalties",[2796,2797],{"type":127},{"type":82,"attrs":2798},{"color":1031},{"type":71,"content":2800},[2801],{"text":2802,"type":75,"marks":2803},"You may have to pay fees to open or maintain a high-interest savings account. Many banks charge monthly service fees to keep your account running. You may also have to pay a penalty if your account dips below a certain balance or if you exceed your bank’s withdrawal or transfer limits. Also keep an eye out for overdraft fees.  ",[2804],{"type":82,"attrs":2805},{"color":919},{"type":119,"attrs":2807,"content":2808},{"level":183},[2809],{"text":2810,"type":75,"marks":2811},"6. Withdrawal limits ",[2812,2813],{"type":127},{"type":82,"attrs":2814},{"color":1031},{"type":71,"content":2816},[2817,2822,2831],{"text":2818,"type":75,"marks":2819},"Before the COVID-19 pandemic, you were limited to withdrawing and transferring your money up to six times every month. Since then, the federal reserve has ",[2820],{"type":82,"attrs":2821},{"color":919},{"text":2823,"type":75,"marks":2824},"removed such limits",[2825,2828,2830],{"type":103,"attrs":2826},{"href":2827,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.forbes.com/advisor/banking/savings/regulation-d/",{"type":82,"attrs":2829},{"color":1047},{"type":112},{"text":2832,"type":75,"marks":2833},", and many banks now offer unlimited transfers and withdrawals per month. If a bank does have a monthly limit, you’re likely to incur a penalty if you exceed it. Before you open an account, one of the most important things to determine is how often you’ll be able to withdraw.",[2834],{"type":82,"attrs":2835},{"color":919},{"type":119,"attrs":2837,"content":2838},{"level":183},[2839],{"text":2840,"type":75,"marks":2841},"7. Accessibility",[2842,2843],{"type":127},{"type":82,"attrs":2844},{"color":1031},{"type":71,"content":2846},[2847,2852,2861],{"text":2848,"type":75,"marks":2849},"One of the biggest benefits of a high-yield savings account is that your funds are relatively accessible. Unlike with a ",[2850],{"type":82,"attrs":2851},{"color":919},{"text":2853,"type":75,"marks":2854},"certificate of deposit (CD account)",[2855,2858,2860],{"type":103,"attrs":2856},{"href":2857,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.investopedia.com/terms/c/certificateofdeposit.asp",{"type":82,"attrs":2859},{"color":1047},{"type":112},{"text":2862,"type":75,"marks":2863},", you don’t have to lock your money in for a set term or into a particular asset. And unlike with the stock market, you don’t have to worry about losing a chunk of your savings if the market takes a sudden downturn. ",[2864],{"type":82,"attrs":2865},{"color":919},{"type":71,"content":2867},[2868],{"text":2869,"type":75,"marks":2870},"That said, accessibility does vary from account to account. Some banks offer online banking portals or mobile apps, while others may require you to go to a brick-and-mortar institution to make transfers and withdrawals. With many accounts, you’ll be able to set up ACH wire transfers and direct deposits, while some will let you withdraw cash with an ATM card. ",[2871],{"type":82,"attrs":2872},{"color":919},{"type":119,"attrs":2874,"content":2875},{"level":121},[2876],{"text":2877,"type":75,"marks":2878},"Pros and cons of a high-yield savings account",[2879,2880],{"type":127},{"type":82,"attrs":2881},{"color":919},{"type":71,"content":2883},[2884],{"text":2885,"type":75,"marks":2886},"High-yield savings accounts come with some big advantages that the average deposit account can’t offer. Here are a few of the most important: ",[2887],{"type":82,"attrs":2888},{"color":919},{"type":336,"content":2890},[2891,2906,2921,2935],{"type":339,"content":2892},[2893],{"type":71,"content":2894},[2895,2901],{"text":2896,"type":75,"marks":2897},"Easy to open:",[2898,2899],{"type":127},{"type":82,"attrs":2900},{"color":919},{"text":2902,"type":75,"marks":2903}," High-yield savings accounts are relatively straightforward to set up. As with opening any new account, you’ll need your social security number, some identification, proof of a physical address, and cash or a check ready to make that first deposit. You can open a high-yield savings account online or in person with a number of big national banks, including Marcus by Goldman Sachs, CIT Bank, Synchrony Bank, and Axos Bank.",[2904],{"type":82,"attrs":2905},{"color":919},{"type":339,"content":2907},[2908],{"type":71,"content":2909},[2910,2916],{"text":2911,"type":75,"marks":2912},"Higher APY:",[2913,2914],{"type":127},{"type":82,"attrs":2915},{"color":919},{"text":2917,"type":75,"marks":2918}," The average savings account doesn’t offer anywhere near the APY that a high-yield account does. Right now, top banks are offering high-yield savings accounts with APYs more than ten times the national average for traditional savings accounts.",[2919],{"type":82,"attrs":2920},{"color":919},{"type":339,"content":2922},[2923],{"type":71,"content":2924},[2925,2930],{"text":1084,"type":75,"marks":2926},[2927,2928],{"type":127},{"type":82,"attrs":2929},{"color":919},{"text":2931,"type":75,"marks":2932},": Though you’re likely to earn more over time by investing your money in a retirement account or even a CD, these accounts also make your funds harder to access. With a CD account, for example, you will pay penalties on early withdrawals. Many high-yield savings accounts, on the other hand, allow unlimited withdrawals and transfers. This makes them an ideal place to store money you may need in the short term but also want to earn high interest on.",[2933],{"type":82,"attrs":2934},{"color":919},{"type":339,"content":2936},[2937],{"type":71,"content":2938},[2939,2945],{"text":2940,"type":75,"marks":2941},"Safe",[2942,2943],{"type":127},{"type":82,"attrs":2944},{"color":919},{"text":2946,"type":75,"marks":2947},": Compared to the stock market, high-yield savings accounts are a much safer place to store your money. Most accounts are FDIC-insured for up to $250,000 per customer, which means that if you deposit less than this, it’s virtually impossible for you to lose money up to the insured amounts. This is in contrast to the stock market, where it’s possible to lose a large portion of your investment if the market takes a sudden downturn. ",[2948],{"type":82,"attrs":2949},{"color":919},{"type":71,"content":2951},[2952],{"text":2953,"type":75,"marks":2954},"Though high-yield savings accounts come with some great benefits, they’re not without disadvantages. Here’s what you should know before you open a new account of your own: ",[2955],{"type":82,"attrs":2956},{"color":919},{"type":336,"content":2958},[2959,2988,3003,3032],{"type":339,"content":2960},[2961],{"type":71,"content":2962},[2963,2969,2974,2983],{"text":2964,"type":75,"marks":2965},"Bad for everyday banking: ",[2966,2967],{"type":127},{"type":82,"attrs":2968},{"color":919},{"text":2970,"type":75,"marks":2971},"High-yield savings accounts are a great place to grow short-term savings, but they’re not ideal for storing money you hope to use on a regular basis. These accounts don’t come with credit cards, debit cards, or check-writing privileges. Some still charge penalties for withdrawing or transferring money more than six times per month. If you’re looking for a place to store your spending money, consider a ",[2972],{"type":82,"attrs":2973},{"color":106},{"text":2975,"type":75,"marks":2976},"high-yield checking account",[2977,2980,2982],{"type":103,"attrs":2978},{"href":2979,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.experian.com/blogs/ask-experian/what-is-high-yield-checking-account/",{"type":82,"attrs":2981},{"color":1047},{"type":112},{"text":2984,"type":75,"marks":2985}," instead.",[2986],{"type":82,"attrs":2987},{"color":919},{"type":339,"content":2989},[2990],{"type":71,"content":2991},[2992,2998],{"text":2993,"type":75,"marks":2994},"Strict requirements",[2995,2996],{"type":127},{"type":82,"attrs":2997},{"color":919},{"text":2999,"type":75,"marks":3000},": You’ll likely have to jump through more hoops to open and maintain a high-yield savings account than you would with a traditional savings account. These include minimum balance requirements, minimum deposit requirements, and monthly maintenance fees.",[3001],{"type":82,"attrs":3002},{"color":919},{"type":339,"content":3004},[3005],{"type":71,"content":3006},[3007,3013,3018,3027],{"text":3008,"type":75,"marks":3009},"Bad for building long-term wealth",[3010,3011],{"type":127},{"type":82,"attrs":3012},{"color":919},{"text":3014,"type":75,"marks":3015},": Even though high-yield savings accounts offer higher interest rates than traditional savings accounts, they’re not high enough to keep up with inflation. If your goal is building long-term wealth, ",[3016],{"type":82,"attrs":3017},{"color":919},{"text":3019,"type":75,"marks":3020},"you’re better off investing",[3021,3024,3026],{"type":103,"attrs":3022},{"href":3023,"uuid":106,"anchor":106,"target":106,"linktype":108},"https://www.wellsfargo.com/goals-investing/saving-vs-investing/",{"type":82,"attrs":3025},{"color":1047},{"type":112},{"text":3028,"type":75,"marks":3029},". Consider bonds, or another high-growth investment vehicle.",[3030],{"type":82,"attrs":3031},{"color":919},{"type":339,"content":3033},[3034],{"type":71,"content":3035},[3036,3042],{"text":3037,"type":75,"marks":3038},"APY is not guaranteed: ",[3039,3040],{"type":127},{"type":82,"attrs":3041},{"color":919},{"text":3043,"type":75,"marks":3044},"Currently, the best high-yield savings accounts offer APYs of around 4.0%, but that rate is not fixed. So, while a bank may tout high rates now, those rates could drop at any time. That means the depositors could make significantly less than advertised. ",[3045],{"type":82,"attrs":3046},{"color":919},{"type":119,"attrs":3048,"content":3049},{"level":121},[3050],{"text":3051,"type":75,"marks":3052},"Is a high-yield savings account worth it?",[3053,3054],{"type":127},{"type":82,"attrs":3055},{"color":919},{"type":71,"content":3057},[3058],{"text":3059,"type":75,"marks":3060},"High-yield savings accounts can be worth having in a few specific situations. If you’re doing any of the following, a high-yield savings account could be right for you. ",[3061],{"type":82,"attrs":3062},{"color":919},{"type":119,"attrs":3064,"content":3065},{"level":183},[3066],{"text":3067,"type":75,"marks":3068},"Growing an emergency fund ",[3069,3070],{"type":127},{"type":82,"attrs":3071},{"color":1031},{"type":71,"content":3073},[3074,3079,3088,3093,3097,3101],{"text":3075,"type":75,"marks":3076},"Experts recommend keeping three to six months’ worth of expenses in an emergency fund. This is a pool of savings you can tap into in case you lose a job or find yourself saddled with a large unexpected expense. ",[3077],{"type":82,"attrs":3078},{"color":919},{"text":3080,"type":75,"marks":3081},"A good emergency fund",[3082,3085,3087],{"type":103,"attrs":3083},{"href":3084,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.earnest.com/blog/how-much-should-you-save-in-your-emergency-fund/",{"type":82,"attrs":3086},{"color":1047},{"type":112},{"text":3089,"type":75,"marks":3090}," should give you enough financial cushion that you’ll never have to charge an ambulance bill to your American Express card. ",[3091],{"type":82,"attrs":3092},{"color":919},{"type":292,"marks":3094},[3095],{"type":82,"attrs":3096},{"color":919},{"type":292,"marks":3098},[3099],{"type":82,"attrs":3100},{"color":919},{"text":3102,"type":75,"marks":3103},"But while important, growing a fund this large can take time. And it can take even longer if you’re earning a meager 0.33% interest, the national average among traditional savings account rates. So, if you’re trying to build an emergency fund — or grow an existing fund when more — a high-yield savings account can be a great solution.  ",[3104],{"type":82,"attrs":3105},{"color":919},{"type":119,"attrs":3107,"content":3108},{"level":183},[3109],{"text":3110,"type":75,"marks":3111},"Funding an important short-term expense ",[3112,3113],{"type":127},{"type":82,"attrs":3114},{"color":1031},{"type":71,"content":3116},[3117],{"text":3118,"type":75,"marks":3119},"If you’re saving up for a big purchase, like a down payment on a house or car, a high-yield savings account could be right for you. Your money will be safe from market fluctuations and FDIC-insured, which means you won’t risk losing it over the short term. Then, when it’s time to make that purchase, your money will be accessible. ",[3120],{"type":82,"attrs":3121},{"color":919},{"type":119,"attrs":3123,"content":3124},{"level":121},[3125],{"text":3126,"type":75,"marks":3127},"High-yield savings account alternatives ",[3128,3129],{"type":127},{"type":82,"attrs":3130},{"color":919},{"type":71,"content":3132},[3133],{"text":3134,"type":75,"marks":3135},"If a high-yield savings account doesn’t seem right for your financial goals, that’s ok. Some alternatives offer similar advantages.",[3136],{"type":82,"attrs":3137},{"color":919},{"type":119,"attrs":3139,"content":3140},{"level":183},[3141],{"text":667,"type":75,"marks":3142},[3143,3144],{"type":127},{"type":82,"attrs":3145},{"color":1031},{"type":71,"content":3147},[3148,3153,3162],{"text":3149,"type":75,"marks":3150},"A ",[3151],{"type":82,"attrs":3152},{"color":919},{"text":3154,"type":75,"marks":3155},"money market account",[3156,3159,3161],{"type":103,"attrs":3157},{"href":3158,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.investopedia.com/terms/m/moneymarketaccount.asp",{"type":82,"attrs":3160},{"color":1047},{"type":112},{"text":3163,"type":75,"marks":3164}," (MMA) is another one of the best savings accounts for storing up cash for a short-term goal. Like a high-yield savings account, an MMA is a type of interest-bearing account that offers higher-than-average APY. These accounts may come with restrictions similar to what you’d find on a high-yield savings account. However, they differ in one major way: Money market accounts offer greater access to your funds. MMAs often come with ATM cards, debit cards, and/or check-writing privileges. This gives you more control over how and when you use your money.  ",[3165],{"type":82,"attrs":3166},{"color":919},{"type":119,"attrs":3168,"content":3169},{"level":183},[3170],{"text":690,"type":75,"marks":3171},[3172,3173],{"type":127},{"type":82,"attrs":3174},{"color":1031},{"type":71,"content":3176},[3177,3182,3190],{"text":3178,"type":75,"marks":3179},"Like a high-yield savings account, a CD is an interest-bearing account that offers a high APY. In fact, ",[3180],{"type":82,"attrs":3181},{"color":919},{"text":1097,"type":75,"marks":3183},[3184,3187,3189],{"type":103,"attrs":3185},{"href":3186,"uuid":106,"anchor":106,"target":107,"linktype":108},"https://www.investor.gov/introduction-investing/investing-basics/investment-products/certificates-deposit-cds",{"type":82,"attrs":3188},{"color":1047},{"type":112},{"text":3191,"type":75,"marks":3192}," may offer higher APYs than even high-yield savings accounts. (Some of the best rates for CDs right now are around 5.0%.) And unlike with high-yield savings accounts, that rate is fixed; it cannot drop over time. The downside, though, is that CDs come with more restrictions. You have to lock your money into the account for a set term –– generally anywhere from a few months to five or so years. If you want to withdraw early, you’ll have to pay a penalty. ",[3193],{"type":82,"attrs":3194},{"color":919},{"type":119,"attrs":3196,"content":3197},{"level":121},[3198],{"text":713,"type":75,"marks":3199},[3200,3201],{"type":127},{"type":82,"attrs":3202},{"color":919},{"type":71,"content":3204},[3205,3210,3217],{"text":3206,"type":75,"marks":3207},"You can open a high-yield savings account at most financial institutions, including credit unions, brick-and-mortar banks, and some online banks. If you’re in the market for a high-yield savings account, consider ",[3208],{"type":82,"attrs":3209},{"color":919},{"text":733,"type":75,"marks":3211},[3212,3214,3216],{"type":103,"attrs":3213},{"href":737,"uuid":106,"anchor":106,"target":107,"linktype":108},{"type":82,"attrs":3215},{"color":1047},{"type":112},{"text":3218,"type":75,"marks":3219}," your number one ally. Navient Marketplace is a one-stop shop for all your personal finance needs. Browse banks, compare APYs, check eligibility standards, and find an account that meets your savings goals. ",[3220],{"type":82,"attrs":3221},{"color":919},{"type":71,"content":3223},[3224],{"text":749,"type":75,"marks":3225},[3226,3228],{"type":78,"attrs":3227},{"class":80},{"type":82,"attrs":3229},{"color":919},{"type":71,"content":3231},[3232],{"text":3233,"type":75,"marks":3234},"Information in this blog, including the rates advertised, are current as of 05/08/2023 and subject to change. ",[3235,3237],{"type":78,"attrs":3236},{"class":80},{"type":82,"attrs":3238},{"color":919},{"type":68,"content":3240},[3241],{"type":71},"\u003C!--#storyblok#{\"name\": \"Typography\", \"space\": \"157494\", \"uid\": \"1c2fecf4-3e7d-45a3-8cd3-ec01aee640ed\", \"id\": \"651798211\"}-->","\u003C!--#storyblok#{\"name\": \"Column\", \"space\": \"157494\", \"uid\": \"33b17b9d-2cea-4cd9-a840-7d806cacba08\", \"id\": 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