3 things to consider when looking for a high yield savings account

With the uncertainty in global markets and rising inflation, experts recommend having access to around three to six months of living expenses in a liquid emergency fund that will provide a cushion if you experience a setback like a layoff, a sudden car repair, or a medical emergency.

To stretch your savings, it’s worth the time, effort, and research to find a high-yield savings account.

Here are three pro tips to help you find a successful high-yield savings account.

HOW MUCH CASH SHOULD HOUSEHOLDS KEEP CASH, AND IN WHAT FORM, FOR EMERGENCIES?

Research online savings account options

Sites like Bankrate.com make it easy to compare rates.

Each listing is a federally insured financial institution, and many of the most competitive offers are available with little to no minimum deposit, according to Greg McBride, chief economist at Bankrate.com.

“Everyone needs emergency savings, and online savings accounts are literally available to everyone,” McBride said.

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THE ADVANTAGES AND DISADVANTAGES OF LIQUIDITY

Review the terms of a high-yield savings account

From a consumer perspective, the good news is that there are a plethora of high-yield savings accounts to choose from.

First, it’s critical to understand the account’s annual percentage yield, or APY. James Morgan, vice president of savings and forecasting at Capital One, said that when looking for a high interest savings account, it’s important to pay attention to the APY because the higher the APY , the more interest you earn.

“Additionally, we recommend choosing an account with no minimum balance requirement and no fees – this way none of your savings will be spent on bank charges and the money you deposit will only grow through interest,” said Morgan.

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For example, he pointed out that many Capital One customers choose Capital One’s 360 Performance Savings Account to store retirement funds, emergency funds or savings for major purchases.

“Compared to traditional savings accounts, high-yield savings accounts pay more interest on the money you put in the bank, which can accumulate more money over time,” he said. -he declares. “With Capital One’s 360 Performance Savings, customers will enjoy one of the highest savings rates on any balance.”

Finally, convenience is essential for banking. At Capital One, Morgan said, customers can easily transfer money between linked Capital One accounts or external bank accounts, set up automatic savings plans, create multiple performance savings accounts and deposit checks almost anywhere and anytime at the convenience of their smartphone.

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Consider a credit union

As part of your research, consider contacting a credit union to inquire about high-yield savings accounts.

“Credit unions are member-owned, non-profit financial institutions without shareholders,” said Dawit Kebede, senior economist for the Credit Union National Association. “They reinvest their income back into members in the form of high interest on savings, low interest on loans, and reduced fees.”

If you’re considering opening a high-yield savings account, a local credit union might be a great option. however, credit unions have membership requirements for joining, there are fewer branches, and a credit union may not be part of an ATM network for on-the-go banking.

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