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A high-yield savings account can help you reach your savings goals.
Key Point
- Keeping all your money in a checking account is not the best option. This is because most checking accounts do not accrue interest.
- Reach your savings goals faster by earning interest with a high-yield savings account.
Many people use checking accounts to store money and pay their daily bills. It’s a smart idea, but it’s not the only bank account. We recommend keeping your savings in a separate account. The type of account you choose is important.
Saving for the future is essential. It can be beneficial to save for expensive purchases, prepare for emergencies, or save now to secure the money you need later.
Having extra money on hand when you need it reduces stress by giving you confidence that you are prepared for the future. Even with good planning, unexpected expenses can occur.
Savings: Click here to find a best-in-class savings account that earns 14 times more than a bank.
MORE: Check out the best online checking accounts for 2022
If you’re saving money, think carefully about which bank account you keep it in. You should separate your savings from your daily expenses by keeping them in a savings account.
Make your money grow faster by earning interest
Many people, especially women, turn to financial expert Tori Dunlap for financial guidance. Through her podcast and social media, Tori shares her favorite money tips.
One financial product she suggests everyone should have is a high-yield savings account. By opening this type of bank account, you can earn interest on your donations.
On episode 34 of her podcast, financial feministTori explains why opening a high-yield savings account is recommended: Earn interest!
She says the interest rates offered on these types of accounts are usually higher than regular savings accounts at your local bank, so you can maximize the interest you receive.
You earn compound interest when you allow your money to stay and grow in your account. This means that you will earn interest on the first money you save and the interest you have already made, which will eventually increase your savings account balance.
If you have money left in your checking account, you miss the chance to earn interest.
How to get the best results from your high-yield savings account
How can I get the most out of a high-yield savings account? Tori recommends storing short-term savings in this type of account. This is not a place to store money for long term savings like retirement.
Instead, it’s a great place to set aside savings for an unexpected emergency, next year’s vacation, or a more expensive purchase you plan to make in the coming months. You can open multiple accounts for
By automating your contribution to your savings, you can reap significant benefits. By doing this, you are committing to a regular contribution. Plus, the automated process ensures you never forget to save. Many people are so forgetful that they put off saving.
If you keep all your money in your checking account, including your savings, it’s time to open another savings account so you can start earning interest. By doing this, you are also less likely to spend your savings on unnecessary purchases.
Not sure who to bank with or which account is best for you? Check out our list of the best high yield savings accounts to see our recommendations.
These savings accounts are FDIC insured, allowing you to earn up to 15x the return of your bank
Many people miss out on guaranteed returns because they are running out of money in big bank savings accounts that are near-interest free.our recommendation best online savings account You can earn more than 15 times the national average savings account rate. click here We reveal our best-in-class picks that made it onto our shortlist for the best savings accounts for 2022.
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