You Gotta Name it SomethingThe term high yield savings account is just a way of saying its a savings account (ideally a very competitive one). There are usually some perks to these accounts. Typically, youll enjoy a higher APY (Annual Percentage Yield). However, you may not agree with the bank on what constitutes a high APY.
Requirements for a High Yield Savings AccountTypically, banks only offer high yield savings accounts to certain customers. To qualify, you probably need to meet at least one of these criteria:
- Make a sufficiently large initial deposit
- Keep a high balance over time
- Limit transactions in and out of the account
- Maintain other banking relationships
Internet Bank AccountsInternet bank accounts might be an exception to the rules above. These accounts offer higher rates with account sizes as small as one dollar! The tradeoff is that you have to do more of the work yourself: using the internet (if you consider that work), linking accounts, and managing transfers.
How to Find High Yield Savings AccountsI recommend using an internet bank account if youre comfortable banking on the web because youll generally have less restrictions. You can find reviews of some of the popular accounts through the pages linked below:
If youre a bricks and mortar person, you should just check with your existing bank. Ask what you need to do to get a higher rate than youre currently getting. If they cant offer you anything, search for High Yield Savings Accounts online. You should be able to find an established bank in your area with something to offer.