Part 8/9:
Traditional banks often provide dismally low interest rates for savings accounts. Conversely, high-yield savings accounts (HYSAs) offer significantly higher returns on deposits. For example, a $10,000 deposit in a standard bank might yield just $1 annually, while the same amount in a high-yield account could earn you $500.
To maximize returns with HYSAs, keep these factors in mind:
Interest Rates: Always look for accounts with competitive rates to ensure your money grows effectively.
Fees: Opt for accounts with zero fees to prevent your interest earned from diminishing.
Insurance: Ensure that the bank is FDIC insured for protection against bank failures, safeguarding your deposits.