No Spend November Days 19 & 20: High Yield Checking Accounts & Savings Accounts
- November 19, 2018
- By: Greenpath Financial Wellness
Today, we are going to talk about the importance of money mindfulness. Mindfulness allows us to make money without having to make big changes. When’s the last time you took a look at your checking and saving account options? Are your accounts working for you? A high yield checking account or savings account may be the perfect option for you to maximize your money.
What is a high yield savings account?
A high-yield savings account is a secure place to set aside money for emergencies, unexpected expenses or long-term goals.
You can withdraw funds if you need to and deposit money into your account at any time. Your account will receive a competitive annual percent yield which contributes to the growth of your money.
Whether you are stashing away money for a rainy day or your next big splurge, a high yield account can be a great option for reaching your goals.
The national average annual percentage rate (APY) for a standard savings account is about .06%,* but a high-yield savings account offers a much higher APY–sometimes more than 20 times the national average.
How do high yield checking accounts work?
High-yield checking accounts work the same way as standard checking accounts:
- Open an account at a financial institution, either online or in person. Do a little research first, as a minimum deposit may be required.
- Learn the terms of the account. Some accounts may require that you maintain a minimum balance to earn interest and avoid account maintenance fees. Some financial institutions don’t charge any monthly maintenance fees.
- Earn interest on your balance. High-yield accounts feature competitive variable interest rates. They give you an opportunity to earn more for your money so that your funds grow faster.
- Withdraw or deposit money as needed. Depending on your financial institution, you may be charged a fee if you do not meet minimum transaction requirements.
- Keep track of your account through online or mailed monthly statements. Some financial institutions require a specific number of logins to your account each month.
You may be missing out on hundreds or even thousands of dollars by using a low-earning checking account. By simply switching to a high yield account, you can earn money without changing anything you’re currently doing.
This may allow you to stretch your dollars further. Now, you may think it’s a small difference, but look at all the money you may be missing out on. If you’re further on your savings journey, an account like this could help get you towards your financial goals faster.
How do I choose a high yield account?
Not all accounts are the same, and not all financial institutions offer a high-yield checking account. You can research high yield checking accounts to get started. Once you feel comfortable with your high yield checking account, you can explore high yield savings accounts as well. When you are considering opening a high-yield account, it pays to compare your options. Here are some things to look for:
- Low minimum deposit
- No account opening or maintenance fees
- Daily compounding interest
- Free online banking
Does this sound like a simple switch? If you need help deciding, you can call GreenPath. We are here to guide you along your journey to financial wellness. We can answer any questions you may have and go over your options. Call us today at 800-550-1961.
Dusti Young has a passion and energy for spreading financial wellness. Through her role at GreenPath, she connects people to financial wellness by working with GreenPath’s partners. Dusti has been with GreenPath for nearly 13 years and has held a number of roles, including financial counselor, business analyst, and her current role, Partner Relations Specialist.