Top 5 High Yield Savings Accounts Now Available

If you haven’t already done so, why not make the effort of setting up a savings account, after all, it’s definitely a lot safer than storing your money under your mattress!? 

Many people do not consider opening savings accounts because the returns are low compared to long term higher risk investments. However, there are a number of advantages to opening an account that outweighs the relatively low return. 

What are the main benefits of a savings account? 

• Perhaps the main benefit savings accounts have to offer is interest. Interest rates will fluctuate and it’s a good idea to check with your bank what they can offer you. To work out how much interest you will earn if you had $1,000 in your account for 1 year with an interest rate of 1% you would earn $10 at the end of the year in interest. 
• Opening a separate savings account from the same provider alongside your primary checking account, enables you to enjoy the sheer ease of instant transfers from one account to another. 
• A savings account doesn't earn a big return but it is low risk, unlike many other investments. Although other investments can reap bigger benefits, this often comes with additional risk. Long-term investors are generally willing to take on more risk and their money will be tied up for a period of time. 
• Should you need to make a withdrawal from your account you have access to your funds at any time. There are no sneaky bills or fines for withdrawing or transferring money across your accounts unlike certificates of deposit. With a certificate of deposit, you enter into an agreement with the bank to keep your money for a fixed time and in this time you will not be able to withdraw it, in exchange for this, the bank will pay you a higher interest rate but this gives you less flexibility. 
• Your money is covered by the FDIC up to a value of $250,000, giving you peace of mind that your money is safe. 
• A savings account doesn't require a big initial investment, most accounts can be opened with a low balance, there is usually no minimum deposit to open and maintain an account. 

Who is offering the best interest rates? 

Best High-Yield Savings Account Rates 

Affirm - 1.30% APY. 

SmartyPig - 1.25% APY. 

Customers Bank - 1.25% APY. 

First Foundation Bank - 1.20% APY. 

CFG Bank - 1.16% APY. 

CIBC USA - 1.15% APY. 

Vio Bank - 1.11% APY. 

Citi - 1.10% APY. 

Once you have set up your account set yourself a savings goal, if you commit to saving a set amount every month it will soon add up.