These higher -
yield accounts typically have larger minimums and withdrawal restrictions.
Not exact matches
In addition to paying a
typically high annual percentage
yield, online savings
accounts offer a host of convenient features and benefits.
Money market funds are essentially ultra-short-term bond funds that offer investors liquidity — as in quick access to their cash — and a small
yield that's
typically more attractive than merely parking cash in a bank savings
account.
Pros:
Typically offer a higher
yield than rates available for saving
accounts or money - market instruments.
High -
yield savings
accounts typically require a larger minimum balance.
For example, Discover Bank
typically offers one of the best
yields on their high
yield savings
account if you deposit $ 500 or more.
Unlike long - term investments, which can
yield a greater return over time, short - term investments are
typically lower - risk investments with a predictable, smaller return and highly liquid assets, such as a high -
yield savings
account.
When CDs are left untouched for the entire duration of their term, they
typically produce
yields higher than regular savings or money market
accounts.
By sticking to companies that have the means to pay high dividend
yields, you not only get the added bonus of a regular paycheque from your portfolio (now electronically deposited in your investing
account), but studies show that you'll likely enjoy a higher rate of return over the long run than the market
typically provides.
(«Rewards» checking
accounts may offer higher
yields, but they
typically have caps on how much you can invest and / or make you jump through all sorts of hoops to get the higher rate.)
The Summit
Account offers great rates: Balances of less than $ 2,500 earn 0.25 % annual percentage
yield, and larger balances earn 1.00 %, a rate
typically reserved for top - of - the - line savings
accounts.
High -
yield checking
accounts offer higher interest, but
typically require higher balances.
Their primary use is to hold cash until it is needed for another purpose, and they
typically pay fairly low rates of interest, although their
yields are usually slightly higher than other types of guaranteed savings
accounts.
However, such
accounts typically require higher balances in order to gain access to the greater
yields.
Typically, high
yield savings
accounts are located at banks, and are FDIC insured.
Loans and interest - bearing
accounts are
typically advertised with one of three methods of determining their interest costs, or paid interest accrued: interest rate, annual percentage rate and
yield.
Taxable bonds — such as those issued by corporations —
typically have relatively high
yields, but you have to pay tax each year on the interest you earn, assuming you hold the bonds in a taxable
account.
In general, regular savings
accounts offer a lower interest rate than high -
yield savings
accounts, but high -
yield savings
accounts typically require a higher minimum balance.
Since most checking
accounts offer little to no interest, high -
yield checking
accounts are a great way for you to maximize the money that
typically would just sit in your
account without earning interest.