Affiliate Link Disclosure

To support our operations and continue creating quality content, we sometimes participate in affiliate and referral marketing programs. This means we may earn a commission if you click on certain links within our website and make a purchase. See more...

A bank lobby with multicultural customers.

Why a High-Yield Savings Account Can Boost Your Cash in 2024?

Spread the love: Share this post!

Imagine your piggy bank earning more money just by sitting there! That’s the magic of a high-yield savings account. But before you grab your spare change, let’s break down what it is and why it might be a smart move for your 2024 savings goals.

A bald eagle on the 1 dollar bill

High-Yield vs. Regular Savings:

Think of a regular savings account as the classic piggy bank – safe and reliable, but the interest it earns is pretty low. A high-yield account, like a turbocharged piggy bank, pays significantly higher interest rates, meaning your money grows faster without any extra effort.

The Rate Race:

Right now, regular savings accounts in the US typically offer interest rates around 0.5% or even lower. That’s barely enough to keep up with inflation, let alone grow your savings meaningfully. But high-yield accounts can offer rates 5 times or even 10 times higher! Some top contenders include as of Feb. 2024:

  • Ally Bank: 4.35% APY (Annual Percentage Yield)
  • Marcus by Goldman Sachs: 4.50% APY
  • CIT Bank: 4.65% APY
  • Wealthfront: 5.00% APY – Affiliate Link
  • Betterment: 4.75% APY (requires minimum balance)

Money Math in Action:

Let’s say you have $1,000 in a regular savings account earning 0.5% APY. In one year, you’d earn a measly $5. Now, put that same $1,000 in a high-yield account offering 4.00% APY. Boom! You’d earn $40 in a year, that’s 8 times more! Over time, this adds up and helps your savings grow faster.

A computer monitor shows a bank balance.

Beyond the Big Banks:

Remember, you don’t have to stick with traditional banks. Wealthfront and Betterment, known for their robo-advisor services, also offer high-yield savings accounts with competitive rates. They might require a minimum balance, but the extra interest can be worth it.

Unlocking the Piggy Bank Power:

Opening a high-yield savings account is easy and takes just minutes online. It’s a safe and smart way to earn more on your money without taking risks. Remember, every little bit counts! So, consider giving your piggy bank a high-yield upgrade and watch your savings flourish in 2024.

Sources:


Spread the love: Share this post!

US Crypto Trading is offered via eToro USA. US Securities trading is offered via eToro USA Securities, Inc.(“The BD”), a broker dealer registered with the Securities and Exchange Commission (SEC). The US Broker Dealer is a member of the Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC). eToro USA (NMLS ID: 1769299 ) is not a registered brokerdealer or FINRA member and your cryptocurrency holdings are not FDIC or SIPC insured. MyFili.com is not an affiliate of eToro USA Securities, Inc. or eToro USA LLC. MyFili.com is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.

Top Personal Finance BooksTop Personal Finance Books | Amazon.com Affiliate