While Amex doesn't offer the top rate nationwide, it has a great mobile app, which is how I do most of my banking. ![]() The rate at the time was about half of what it is now, and because I have seen it go higher over the years, I've urged friends and family to open high-yield savings accounts, too. I first opened a high-yield savings account with American Express in 2019. Pros and Cons of High-Yield Savings Accounts Virtually every high-yield savings account allows you to send or receive external transfers so that you can easily move money in and out of your savings account. External or ACH transfer - The electronic process of moving funds between two financial institutions is called an external or ACH transfer.Most institutions offer it with their mobile apps. Mobile check deposit - The ability to deposit checks using the camera on your smartphone or tablet-rather than having to take the check to a branch-is called mobile check deposit or remote check deposit.Be sure you understand the fee rules for any account you're considering. Many accounts do not have a monthly maintenance fee, while some others provide ways for you to avoid the fee each month. Unlike ones triggered by a transaction, such as an insufficient funds fee or a wire transfer fee, the monthly service fee is a standard fee you could be charged every statement cycle. Monthly maintenance fee - Banks and credit unions charge various types of fees.So be sure the account you choose either has no minimum ongoing balance or one that you feel confident you can always stay above. Falling below the minimum requirement could mean being hit with a fee, or could instead mean you won't earn the high-yield interest rate on the account. For instance, a bank may require your balance to stay at or above $100 or $1,000 for its account-or any other amount the bank prefers. Minimum balance requirement or ongoing balance - Unlike a minimum initial deposit, a minimum balance requirement refers to the least amount of money you can keep in the account on an ongoing basis.Note that if an account has a initial deposit requirement but then no minimum ongoing balance, you do not need to keep that money at the bank after your initial deposit. And some accounts have no requirement, letting you open the account with no money deposited. It could be quite low, like $25, or could be as much as $25,000 for some high-balance accounts. Minimum opening deposit or initial deposit - Some bank accounts-whether a savings, checking, or money market account-stipulate a minimum deposit you need to make to open the account. ![]() When researching high-yield savings accounts to find the best one for you, be sure you understand what these commonly used terms mean. And you can still keep your checking account where it is because it's simple to link a high-yield savings account to your primary account for easy transfers.Ĭommon Savings Account Terms to Understand The difference in savings account interest rates can be dramatic, with the top accounts in the country typically offering 10 to 12 times the national average rate. Often offered online, whether by an internet-only bank or the online division of a brick-and-mortar bank, they're a type of savings account that's based on the idea of holding your savings wherever it can earn a competitively high yield, even if that's a different bank than where you hold your checking account.
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