Why You Should Open a High Yield Savings Account

I wish I had come across high yield savings accounts sooner. A couple years ago, I started my first post college job. I was really excited to level up from a server’s salary to an engineer’s salary. Although I was enjoying the new perks of health benefits and extra income, I noticed that my bank started charging me for having an account. 

Here are the 3 reasons why you should open a high yield savings account. 

Avoid Monthly Fees

One of the few perks of being a student was that my bank waived monthly maintenance fees on my account. Yet once I transitioned into a fulltime employee, the monthly maintenance fees emerged. I couldn’t help but feel it was wrong for someone to charge me to keep my money in their bank. Porque, pues?

Higher Annual Percentage Yield (APY)

I began looking for alternatives and came across a new online bank who offered a checking and savings account with $0 monthly maintenance fees and most impressively, a higher than average annual percentage yield (APY) on both accounts. I didn’t know anyone who had heard of them, let alone anyone who had experience banking with them. Yet, the APY was too good to not at least look into – their APY was 1.6%! My bank at the time was offering .01%. That’s literally 100x better than the account I was currently in! I did my research and decided I was going to try them out.

Build Your Savings Faster

Once I opened my account, the returns were much higher than with my previous bank. I would get a couple cents on the money I had in my old bank account and with the new high yield savings account I started getting whole dollars! This meant building my savings fund faster and allocating more money into my budget. 

Here’s what the difference looks like:

Based on these numbers, why wouldn’t I want to make $30 vs 30 cents?! Get into the habit of saving money. 

Ready to Open Your High Yield Savings Account?

There are plenty of banks who offer high yield savings account. You should always do your research when looking for a new bank account. Here are a couple things to consider when looking for a high yield savings account:

• There should be no fees for regular use. Para que voy a pagar prestarte mi dinero?
• Should offer easy transfers to and from linked accounts. Y que si lo necesito immediatamente?
• Minimum deposits should be $0 ideally. Cuanto tengo que depositar para tener una cuenta?
• FDIC insured. Y la aseguranza?
• APY (shoot for over 1%). Cuanto voy a ganar?
• User friendly mobile app. Como lo uso?

I really wish I would have found out about high yield savings accounts sooner! I have never looked back and ONLY have accounts with banks that offer high yield and no monthly fees. 

Who is your favorite high yield savings account bank and why?