Reasons Why High-Yield Savings Accounts Might Be The One For You
People love to invest. After all, who wouldn’t want to see their money work and grow for them without ever having to put in heavy work? But, frankly speaking, earning is just one thing. Investing, in its entirety, is made up of two components: risk and reward. People love to experience the latter and want to completely avoid the former. This is why people love low-risk investments. Low-risk investments, such as savings accounts, are preferred by most because it provides them with plenty of benefits that they just cannot get elsewhere. If you’re interested in opening a high-yield savings account, check out UFB Direct High-Yield savings account offers to get the best rates on the market.
In this article, we will provide you with some reasons why high-yield savings accounts may be the best route to take, given your personal and financial circumstances.
Easy access to funds: Banks that offer high-yield savings accounts will usually allow you to access your money through various methods. This could be through checks, debit cards, or online banking. From the perspective of the customer, this makes it, so it will be easier to withdraw money if and when you need it. On top of that, it’s an added layer of assurance and peace of mind that you still have some sort of control over the funds.
FDIC insurance: Similar to traditional savings accounts, high-yield savings accounts are also insured by the Federal Deposit Insurance Corporation (FDIC). The FDIC allows up to $250,000 per deposit, per bank, and per type of account. This is a very important factor to consider because you can never know for sure the things that might happen to the financial institution that you have an account with. In this regard, it’s better to be safe rather than sorry.
No risk of loss: As we mentioned above, high-yield savings accounts are considered low-risk investments. This is precisely because they are backed up by the full trust and credit of the FDIC and the fact that interest returns are guaranteed. As such, high-yield savings accounts are geared more toward investors who are risk-averse or those who have a low-risk appetite.
Higher interest rate: From the term itself, a high-yield savings account will naturally come with better interest rates as compared to a traditional savings account. This only means that the returns you can get from a high-yield savings account are going to be much higher. In turn, this could help you reach your financial goals a lot faster. High-yield savings accounts are perfect for those who want to set up a short-term investment or those who are planning to save up money in case of emergencies.
Can be set up with your current bank: Most people already have a traditional savings account and a checking account with their preferred bank. The good thing about high-yield savings accounts is that they are also being offered by most banks and credit unions. This means that you can also apply for a high-yield savings account with the same bank that you are currently working with right now. This could be a huge factor to consider, especially for those customers who are very specific about the organizations that they work with.
Simple: At the end of the day, high-yield savings accounts work pretty much like any other savings account. You put up a fund, you let it sit for a while, you let it earn interest, and you gain money by doing so. This makes high-yield savings accounts a great option for those who want to have a passive investment where they won’t have to put in too much work. It’s a reliable investment with little-to-no risk and with decent returns.