4 Reasons to Open a High-Yield Savings Account in November
KEY POINTS
- High-yield savings accounts kick figurative butt on interest rates.
- Banks will give you money to open your account and make some deposits.
- Savings accounts keep your money handy -- but not too handy.
You have a lot of choices about where to keep your money, but not every option is ideal for every situation. For example, a great checking account is perfect for everyday spending, but it's not the best place for your savings.
Indeed, when it comes to your emergency fund and other short-term savings, there are few places as good to stash it as a high-yield savings account. Here are just a few of the reasons why.
1. APYs over 4%
The No. 1 reason to keep your money in a savings account over a checking account is the interest rate. Most checking accounts have pitifully low interest rates -- if they offer interest at all (which many don't).
In fact, the national average interest rate for an interest-bearing checking account is a paltry 0.07%. A regular savings account won't do it, either; the national average for those is better, but still not great at 0.45%.
Our Picks for the Best High-Yield Savings Accounts of 2024
| Product | APY | Min. to Earn | |
American Express® High Yield Savings
Member FDIC.
APY
3.80%
Rate info
3.80% annual percentage yield as of December 28, 2024. Terms apply.
Min. to earn
$0
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
3.80%
Rate info
3.80% annual percentage yield as of December 28, 2024. Terms apply.
|
$0
|
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
Capital One 360 Performance Savings
Member FDIC.
APY
3.80%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn
$0
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
3.80%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
|
$0
|
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
Western Alliance Bank High-Yield Savings Premier
Member FDIC.
APY
4.46%
Rate info
The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
Min. to earn
$500 to open, $0.01 for max APY
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
4.46%
Rate info
The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
|
$500 to open, $0.01 for max APY
|
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
Instead, look for a high-yield savings account with a rate over 4%. To see the difference your APY makes, here's how $10,000 would grow in one year at different rates:
| APY | 0.08% | 0.46% | 4.00% | 5.00% |
|---|---|---|---|---|
| End Balance | $10,007.00 | $10,045.09 | $10,407.42 | $10,511.62 |
| Total Interest | $7.00 | $45.09 | $407.42 | $511.62 |
2. New account bonuses
Sure, higher rates are always a win, but the main reason I've opened my last three bank accounts was for the welcome bonus. Many banks will offer a bonus for new customers who can meet the requirements, and these bonuses can be worth hundreds of dollars.
3. Quick, easy access to your cash
One popular option for letting your savings grow is to put it into a certificate of deposit (CD). The best CDs earn over 4% APY and lock in your rate for the life of the CD.
The downside of CDs is that they impose high fees for early withdrawals. A good high-yield savings account, on the other hand, gives you access to your money whenever you need it through easy transfers to your checking accounts, no fees involved.
Pro tip: If you want the interest-earning capacity of a high-yield savings account, but you also want a debit card and check-writing abilities, check out our top-rated money market accounts.
4. Money out of sight is money out of mind
An easy trick I like to use to keep my savings safe from, well, myself, is to keep it at a different bank from my checking account.
You see, I log into my checking accounts very regularly, and seeing a big lump of money just sitting there...well, let's just say I know my own willpower (or lack thereof) well enough not to tempt myself like that. So my savings account sits elsewhere, and while I do check on it periodically, I let that temptor shout into the void most of the time.
If you're anything like me in that regard, then I highly suggest opening a new high-yield savings account at a bank you don't use for anything else. Because even the best interest rates aren't going to help if you don't let your money sit and grow.
Our Research Expert
Brittney is a data-obsessed finance nerd whose personal credit card collection is in the double digits. She has been sharing personal finance advice with readers since 2016.
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