Believe it or not, being a successful saver is pretty simple. It involves a little planning ahead and understanding all of your options when it comes to saving funds for the future — whether you are putting money aside for a rainy day or planning for a white-water rafting trip next summer.
High-yield savings accounts can help anyone who wants to save for a trip, a house or education and prepare for what's next.
To make saving easier, more banks offer high-yield savings accounts, which typically pay a higher interest rate on deposits than standard savings accounts. Also known as a high-interest savings account, high-yield savings can simplify the savings process and help you reach your goals in less time.
Whether you want to save for a new bike or a family vacation, whether you're planning ahead for college or retirement, or whether you'd simply like to earn a little more on the money you've already set aside, high-yield savings accounts can make it easier for you to reach your personal and financial goals by increasing the speed at which you grow your savings.
In addition to higher interest rates, high-yield accounts are great because:
They are a safe way to save: High-yield accounts are insured up to $250,000 as long as you open them at an FDIC-insured institution. (It never hurts to check, but most major banks fall into this category).
Another benefit is that many banks offer automatic transfers, ATM access, overdraft protection and more with a high-yield savings account.
If you're looking to amp up your savings efforts, higher interest rates can help your money make more of an impact in less time.
You can view Citi's savings products if you'd like to explore your options.
What is the main difference between high-yield savings accounts and standard savings accounts? Interest rates. That's why it pays for consumers to seek the best rates for their situation. Sometimes, interest rates for high-yield savings accounts will be considerably higher than standard accounts, while other times the difference is less significant. The best savings accounts are typically those with higher interest rates and low or no fees.
High-yield savings accounts offer higher interest rates, helping you meet your savings goals faster. However, you should also take into consideration any monthly maintenance fees. And, in comparison to many basic savings accounts, high-yield savings accounts often have higher requirements for opening deposits or monthly minimum balances.
Even if an account's requirements fit your needs today, your financial picture could change over time. Consider a high-yield savings account that allows the option to combine balances across all eligible accounts, such as checking or CDs. Whether you choose a conventional savings or high-yield savings account, it's always smart to pay attention to the details and requirements for your banking relationship.
Some key features to review when selecting a high-yield savings account are:
The short answer is: probably now.
A great time to open or add more money to a high-yield savings account may be after your next pay raise/bonus at work, when you have a specific goal in mind (the latest smart phone or a trip abroad), or if you want an account that provides instant access to your savings.
After you've pinpointed the best account for your needs and interests, applying is simple. You can visit your financial institution's website and follow the online instructions or you can visit your nearest branch and ask to speak with a branch representative.
Applicants should be a U.S. citizen or resident and at least 18 years old. You'll need to provide a physical U.S. address, your birth certificate and Social Security number. The process takes about 15 minutes or less and can help you start saving right away. Determine whether you want paper or online statements, and check your balance monthly.
Citi allows you to open a savings account online, in branch or over the phone. See how much you can earn with a Citi savings account today.
High-yield savings accounts pay more than standard savings accounts, and they can help you make real progress toward your savings goals. If you want your savings account to make a greater impact on your to-do list or your bucket list, consider opening a high-yield savings account.
The article content provides general information about banking, however consumers should refer to the terms and conditions financial institutions provide for various products.
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