Maximize the Value of a High-Yield Savings Account

You can reap the rewards of this high-interest account

05/20/2014

Saving money is a top priority for many Americans, particularly in today’s challenging economic climate. As a business owner, you’ve already made a budget and cut back on your monthly spending, but you’re still searching for ways to significantly improve your savings.
 
Thankfully, high-yield savings accounts are readily available nationwide and can make it easier to save money quickly.
 

What is a high-yield savings account?

Unlike a traditional deposit savings account, a high-yield option features above-average interest rates.
 
There are many benefits provided by high-yield savings accounts. Each of these options is federally insured, which means account holders’ funds up to $250,000 are protected by the federal government.
 
Perhaps most important, high-yield savings accounts can help people achieve their long-term savings goals faster than many other options can. In fact, those with good bank histories may qualify for higher-than-average interest rates, which further increase these accounts’ value.
 

Does a high-yield savings account work well for businesses?

High-yield savings accounts are safe, dependable options for businesses. These accounts offer flexibility that enables company operators to keep their savings secure, which is crucial in a sometimes-unstable economic climate.
 
Before setting up a high-yield savings account, consider the following factors to maximize the value of this option:
  • Number of transactions allowed. Some banks restrict the number of transactions that account holders can complete within a set time frame. Review a financial institution’s rules regarding money transfers and withdrawals to ensure that a high-yield savings account suits a business.
  • How deposits are handled. Deposits are vital for business owners, and those who set up high-yield savings accounts should be able to add money without delay. Reviewing how deposits are handled is important for online account holders because it could take longer for a deposit to become available through this type of account than through options provided by brick-and-mortar banks and credit unions.
  • Maintenance and setup fees. Those who establish high-yield savings accounts want to save money, not spend more of it. Be aware of maintenance and setup fees so that you can plan accordingly.
It is often better to err on the side of caution when opening a savings account, and conducting plenty of research in advance helps ensure that business owners can find high-yield options that match their preferences. A diligent shopper is a smart account holder, so do the necessary homework to increase your chances of enjoying the benefits of a high-yield savings account.

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