Considering opening a high-yield savings account (HYSA) to earn competitive interest rates? Many HYSA accounts offer 10 times the interest of traditional savings accounts. Rates can reach as high as 4% APY, compared to the average savings account rate of 0.38% APY. Shop around to find the best account for your needs.
To open an HYSA, you’ll need to provide personal and financial information, such as a government ID, Social Security number, address, and email. Some banks may require an initial deposit, which can be funded through various methods like check deposits or bank transfers.
Online banks, credit unions, traditional banks with online divisions, and fintech companies offer high-yield savings accounts. Each type has its pros and cons, so compare rates, fees, and features before opening an account. Consider factors like minimum balance requirements and withdrawal limits.
After opening an HYSA, manage it effectively by setting up automatic contributions and assigning beneficiaries. Use mobile banking apps for convenience, create strong passwords, and sign up for e-statements and account alerts. Take advantage of free budgeting tools to track your progress and stay motivated to save.
Read more at Yahoo Finance: How to open a high-yield savings account: Step-by-step instructions