Following Apple's savings account news, is now the right time to open an account?

Apple fans received some welcome news this week when the tech giant announced the launch of a new savings account with a 4.15% annual percentage yield (APY) and no fees. The savings account from Goldman Sachs also won't have any minimum deposit or minimum balance requirements, Apple said.

"Savings helps our users get even more value out of their favorite Apple Card benefit — Daily Cash — while providing them with an easy way to save money every day," Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet, said in Monday's announcement. 

"Our goal is to build tools that help users lead healthier financial lives, and building Savings into Apple Card in Wallet enables them to spend, send, and save Daily Cash directly and seamlessly — all from one place."

The timing of the Apple news comes amid a high rate environment that has been a big boost for traditional deposit vehicles like high-yield savings accounts and certificates of deposits (CDs). With Apple's involvement in the space, many are wondering if now is the right time to open an account.

Explore your high-yield savings options here now to see how much more you could be earning. 

Is now the right time to open a high-yield savings account?

Timing is everything, particularly when it comes to financial products and services. That said, there are some compelling reasons to open a high-yield savings account now. Here are three:

Rates are significantly higher

Interest rates on a high-yield savings account are exponentially higher than what you may be making by leaving your money in a regular account. Interest rates on traditional savings accounts are around 0.39% according to the FDIC. But as Apple's rate has shown, account holders can easily get rates in the 3.50% to 4.50% range or even higher. This may not seem like a huge jump percentage-wise but when the math is completed account holders would make a lot more money by moving their funds into a high-yield account.

A $5,000 deposit into a regular account, for example, would only be worth $5,019.50 after 12 months (at the 0.39% rate). Those same funds in a high-yield account with a 3.5% rate would have grown to $5,175.00 over the same time period. And that's at the 3.50% rate. Apple and many other lenders are offering even higher interest rates.

So shop around for an account and start earning more money now.

Rates may change

The only thing predictable about today's economy is the unpredictability of it all. Yes, rates on high-yield savings accounts are high now but they may not stay where they are. It's possible they may flatten or even drop. Interest rates on high-yield savings accounts, unlike CDs, are adjustable and can rise or fall based on market conditions and other factors. Because of the nature of these types of accounts, it makes sense to act swiftly to take advantage. You'll only boost your savings by opening an account now and if the rates change in the future, you will have at least earned a little extra by acting at the right time.

They're a good way to boost your emergency savings

Do you have an emergency fund? And if you do, do you have enough saved? 

A high-yield savings account can help on both fronts. By using this type of account as your emergency fund you can better protect and boost your principle. A traditional savings account earns low interest and is readily available for withdrawals - two things that aren't helpful in today's economic climate. By contrast, many high-yield savings earn significantly more interest (see above) and are commonly found online, thus reducing the temptation to easily tap into your savings. Because these accounts are generally online (and the lending institution has more money to play with) you'll also encounter fewer fees, which can give your emergency savings a smoother way to grow. 

The bottom line

Whether you go with Apple's new savings account or another lending institution, there's no doubt that now is a great time to open a high-yield account. Rates are much better than most regular accounts, although they could change in the short-term (hence why now is an opportune time to open an account). High-yield savings accounts can also help protect and grow your emergency savings, which is particularly helpful in today's economic climate.

Explore your high-yield savings options here now to see which lender is best for you.