A savings account that pays a higher interest rate than traditional savings accounts, helping your money grow faster.
In Depth
High-yield savings accounts typically offer significantly better interest rates compared to standard savings options at brick-and-mortar banks. These accounts are often found at online-only banks, which have lower overhead costs and can pass those savings on to customers through better rates. They are a great place to keep emergency funds or money you plan to use in the short term, as they offer easy access to your cash while still earning a competitive return. Your money is also FDIC-insured, just like a regular savings account.
Example
Instead of letting my emergency fund sit in a regular savings account, I moved it to a high-yield savings account to earn more interest.