There's no downside to having a high-yield savings account it grows the money you're stashing away for a rainy day or a big purchase, while keeping it accessible and safe. But because so many banks offer them, it may seem difficult to choose the one that's right for you. Here's the good news: You really can't go wrong.
High-yield savings accounts are attractive for their competitive rates, offering up to 200 times more interest than a traditional savings or checking account. Dozens of banks have high-yield savings accounts and it may come down to where you prefer to bank an online-only bank, an investment bank, or a robo-advisor , for example as well as what you're looking for, whether it's minimal fees, the highest possible interest rate, the ability to transfer money whenever you want, a connected checking account, 24/7 customer service, or easy access to your account.
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Below you'll find each of these high-yield savings accounts compared on a variety of metrics.
You may notice the interest rates vary among these accounts, with Wealthfront's offering the highest rate as of June 10, 2019. It's important to note that interest rates fluctuate depending on inflation and the government's interest-rate benchmark.
Choosing the account with the highest interest rate today is a fine decision, but know that the rate offered when you open the account isn't locked in. In short, ensure the account is otherwise desirable it has low fees, for example before parking your savings there.
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Across the board, high-yield savings accounts offer better rates than a traditional savings account hence: high-yield so you've already made progress toward automatically building wealth by keeping your money there, regardless of how the rate shifts over time.
The bottom line: Many of us make the mistake of being paralyzed by indecision when it comes to money. Not saving because we don't know how much to save, not investing because we can't figure out the best way to invest, or losing money to fees and inflation because we won't choose a better bank account I've been there and chances are you have, too. Don't let that hinder you from building wealth.
As financial expert and bestselling author Ramit Sethi puts it, "The single most important factor to getting rich is getting started, not being the smartest person in the room." Choose an account with little fees and high earning potential, Sethi says, and move on.
Considering a high-yield savings account? Take a look at these offers from our partners:
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