FAQs About High-Yield Savings Accounts

Unlike certificates of deposit, which maintain a constant interest rate for the term of the certificate, high-yield savings account rates are variable rates. That means they’re determined by market factors, which can change frequently. While there are some high-yield savings accounts that may offer a high rate for a specific term, most are consistently at the upper end of the interest rate range. For example, the banks that are currently paying the highest rates on savings accounts now were the same ones paying high rates one or two years ago.
It’s not the banks that place restrictions on savings accounts (and money market accounts for that matter as well), but federal regulations. Regulation D banks are generally required to limit the number of transactions in a savings account to no more than six per statement cycle. Though there is some flexibility as to exactly what constitutes a transaction. Carefully read the bank’s policy on what transactions count toward the limit.
Pretty safe. Virtually all banks in the United States are covered by FDIC insurance. That protects each consumer for up to $250,000 per depositor, per bank. And yes, that includes online banks that you never heard of.


Opening a high-yield savings account is pretty much a no-brainer. They require little effort to set up and many have no fees or minimums, making this one of the easiest steps you can take to get your money in order. High-yield savings accounts offer great interest rates to help incentivize saving and reward you for your efforts.

Whether for your emergency savings, a short-term goal, or both, open a high-yield savings account. You’ll thank yourself.

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Featured image: Shutterstock.com / Prostock-studio

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Lauren Graves is a personal finance writer specializing in honest brand and product reviews. She wants to help people feel less stressed when they spend their hard-earned cash and do her part to make money make sense.