What is a high yield account?
Maximizing your savings: The ins and outs of high yield accounts
Are you looking for ways to make your money work harder for you? If you're interested in optimizing your savings, a high yield account might be the financial tool you've been searching for.
Understanding high yield accounts
A high yield account is a type of financial account that offers a higher interest rate compared to traditional savings or checking accounts. The appeal of a high yield account lies in its ability to help you grow your money at a faster rate than other accounts.
Is my money protected in a high yield account?
At credit unions, your money is protected and insured by the NCUA up to $250,000 per depositor, per institution. This ensures that even if the credit union were to experience financial difficulties, your deposited money is safeguarded. Unlike investment accounts, funds in a high yield account are not invested into the market with a chance of loss.
What if I already have a savings or checking account?
You can always open another account, even at the same financial institution! If you already have a traditional savings or checking account, adding a high yield account to your financial strategy can be a smart move. These accounts are particularly useful for building an emergency fund, saving for short-term goals or simply growing your money more effectively than with a standard account.
Is there a minimum balance requirement?
High yield accounts often have varying minimum balance requirements, but they tend to be lower than those of certain investment accounts. While some institutions might require a minimum deposit to open the account, others might require a minimum average daily balance to avoid fees. It's important to carefully review the terms and conditions of the account you're considering to understand any associated requirements.
Here at Southland, we offer both a High Yield Savings and a High Yield Checking account. Our High Yield Savings accounts require a minimum deposit of $10,000 to earn the promotional rate. Our High Yield Checking accounts do not have a minimum deposit or balance requirement to earn the promotional rate.
Is a high yield account right for you?
A high yield account can be a powerful tool for growing your savings. With their competitive interest rates and NCUA insurance, these accounts offer a blend of growth potential and security. Just be sure to review account terms to make an informed decision that aligns with your financial situation and goals.