A high-yield savings account isn't just a stable place to stash your cash. Thanks to the higher interest rate, money in a high-yield account will grow at a faster rate than a traditional savings account.
And even though the economic fallout from the coronavirus pandemic has caused savings account interest rates to drop to nearly half of what they were a year ago, you can still earn over 10 times more interest than the national average.
For those looking to grow their money, here are the pluses and minuses that come with having a high-yield savings account:
Everyone should have some cash savings on hand for emergencies and short-term financial goals. And the smartest place to store that money is in a high-yield savings account.
Here are some of the pros to opening a high-yield account:
While there are a lot of upsides to putting your money into a high-yield savings accounts, there are a few downsides to keep in mind.
Here are some of the negatives:
In general, high-yield savings accounts are an essential financial product when you're building an emergency fund or saving up for a something in the near future, like a family vacation.
You can maximize the return on your money more so than in a brick-and-mortar bank account, your cash is safe and you can access it if you need to.
Information about Marcus by Goldman Sachs High Yield Online Savings, Ally Online Savings Account, Synchrony Bank High Yield Savings, Vio Bank High Yield Online Savings Account, and Varo Savings Account has been collected independently by CNBC and has not been reviewed or provided by the bank prior to publication.