There are plenty of places worth investing your money for long-term growth.
But what about short-term savings?
Shouldnt you be able to earn a little something extra on that, too?
Thats because the national average is 0.10%.
But this isnt an interest rate thats going to change your life.
Still, thats not nothing.
So: With all the high-yield savings accounts out there, how do you choose?
Across the board, U.S. savings accounts have a limit of six withdrawals per month.
If you attempt to exceed the six-withdrawal limit, many banks will close your account.
So expect a six-withdrawal limit, but do check for any other restrictions on depositing or withdrawing money.
For example, at Marcus, theres an online transfer limit of $125,000.
Thats probably not a deciding factor for you, unless you just won the lottery.
(The0.10% APYmentioned above is the national average for the week prior to this articles date.)
For high-yield accounts, look for a variable APY around 2%.
At the time of this writing, I found rates in the 2.1-2.3% range.
Remember, these APYs arent set in stone.
Theyre also likely to changeif the Federal Reserve raises or lowers rates.
ensure its insured
The Federal Deposit Insurance Corporation (FDIC) insures savings accounts offered by banks.
The National Credit Union Administration (NCUA) insures savings accounts offered by credit unions.
Do a quick look-see to ensure the account youre considering is insured, OK?
A lot of banks put Member FDIC right next to their name.
The typical limit for this is $250,000.
Are you ready to select it and forget it?
Once you feel settled on a high-yield savings account option, dont bop around chasing rates.
Its not worth switching savings accounts to go from a 2.1% APY to a 2.3% APY.
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