While money doesn't grow on trees, that doesn't mean its value can't grow over time. High-yield savings accounts can offer interest rates as much as 11 times higher than the interest paid by traditional savings accounts*, depending on economic and personal spending factors. A high-yield account offers a flexible savings mechanism for those customers who want the most control over their capital, providing them with an alternative saving capacity that meets those unique needs.
Why 'High Yield' Means High Returns
Most people recognize the value of holding at least some of their money in a savings account. Savings accounts are easily accessible, simple to manage and provide ready cash when needed. However, even though they offer an annual interest rate of growth, that rate is usually quite low; the national average interest rate for standard savings accounts was just .21% as of October 2022. At that rate, the account's value as a financial growth asset is negligible.
The high-yield account, however, usually provides a much better annual interest rate as a return. The popularity of these accounts has increased with the rise of online banking. Instead of relying on a conventional "brick and mortar" bank for savings purposes, digital banks now offer comparable money-saving services at lower fees. The growing number of banking opportunities (both brick-and-mortar and online) also inflates the competition between them.
Consequently, many high-yield savings accounts also provide consumers with a safer, alternative investment vehicle than investing in the open markets. In today’s climate, with markets being down, high-yield savings accounts provide consumers with the ability to grow their wealth without the concern that market volatility has on that investment.
The high-yield account offers many benefits:
Certainly, compared to the traditional savings account, the high-yield savings account offers more benefits and a better opportunity for the account value to grow.
Most organizations are very familiar with their consumers’ financial habits, hopes, and dreams. However, those consumers may not understand how they can use a high-yield savings account to grow their money while retaining access to it.
Even Financial offers your consumers to compare online savings accounts with APYs 11X the national average from a network of premium financial institutions. Interested in adding a Savings Marketplace to your business, or to learn more about high-yield savings accounts? Reach out to us today.
Disclaimer: The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the suitability of any Even Financial product or service to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional. Any information or statistical data sourced by Even Financial through hyperlinks, from third-party websites, are provided for informational purposes only. While Even Financial finds these sources to be accurate, it does not endorse or guarantee any third-party content.
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