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Onwards you go to become THE Rich Grandma – High Yield Savings Accounts
- Adithi Volunteers
- 4 days ago
- 2 min read
Okay, so you have invested in a Roth Ira, 401K, and HOPEFULLY put the money in there into index funds. PLEASE. But, that’s going to take a while before anything happens, plus there’s an age requirement to take the funds out. That’s where our QUEEN — a high yield savings account comes in!!! Time is still a requirement here – sorry :(
A high yield savings account (HYS) is an account where more money from interest will be added to your savings compared to other account providers. OR basically instead of receiving $1 annually in your savings accounts, you get $200 annually. Not bad, right. Free money is free money!! Keep in mind this is more for short-term financial goals.
It is a SAVINGS account though, so especially for that emergency fund (which you better be building up 👀) this will work in your favor as the years of compounded interest might build up to thousands of dollars. THOUSANDS OF DOLLARS FROM BASICALLY DOING NOTHING. That’s what we like to hear!
The interest rate applied to your savings will FLUCTUATE with the market, so if in 2 years time the market is down, so will be your interest rates. BUT a high-yield savings account will always do better than the traditional savings account.
For example if you have $10,000 and the APY (annual percentage yield) is 3.50% for the whole year, you would get $350. Usually this is given in monthly payment so about an added $30 per month. Let’s talk about the pros and cons.
Pros:
Doesn't require a minimum
Your money will ALWAYS GROW (no risk of losing money!)
Many are FDIC-Insured meaning the Federal Deposit Insurance Corporation (FDIC) insures balances for up to $250,000 per bank, per account ownership. If an FDIC-insured bank goes bankrupt, then balances up to that amount are guaranteed to be returned to customers. (Sometimes rambles are needed -- what can I say 🤷♀️)
Cons:
Here are some providers of High Yield Saving Accounts to consider: 🙂
Highest APY (in April 2025):
My banking direct – BUT minimum of $500 is needed
Convenience:
Capital One and PNC (check with your credit card provider to see if they offer a HYS)
Honorable Mention:
Sofi – GREAT FDIC-Insured program and no minimum
We love HYS but do consider investing in other stocks for more long-term financial goals. Till next time where we are going to be talking about drum roll government bonds! YAYY!
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