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3 reasons to open a high-yield savings account

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A high-yield savings account offers significantly more interest than traditional accounts do. Getty Images

There's never a wrong time to start earning more money, particularly now with inflation still painful and interest rates still high. For the millions of account holders with savings in the bank, there is a reliable way to start earning significant sums of money quickly. By opening up a high-yield savings account - or by converting a current savings account into a high-yield one - account holders can make exponentially more interest than they have been accustomed to earning with their traditional savings.

While the most well-known benefit of this sort of account is the extra money earned, they're actually beneficial to have for a variety of reasons.

Start by exploring your high-yield savings options here to see how much you could be earning.

3 reasons to open a high-yield savings account

Here are three major reasons why you should open a high-yield savings account now.

You can start earning significantly more interest

The average Annual Percentage Rate (APR) on a regular savings account currently hovers around 0.40%. But a high-yield savings account could offer a rate of 3.50% or higher. What does that look like at the end of the year? If you have $5,000 in a savings account you'll have made $20 after twelve months. But with a high-yield account, you'll have earned $175 on that same amount. The more interest you earn the more your bottom line will grow.

It's easy to get started. You can plug in your zip code here to check out some local banks and credit unions offering high-yield savings accounts.

Accounts are low-risk

Unlike investing in the stock market or other items prone to market volatility, high-yield savings accounts are relatively low-risk. Yes, rates can change and the amount you may be earning currently could drop in the future. But it could also rise, should the Fed continue to pursue rate hikes. Regardless of interest rate activity, however, your money will only grow and your principal won't suffer (unless, of course, you withdraw from the account). Another feature: These accounts are FDIC-insured up to $250,000, so you don't have to worry about losing your money should something happen with the institution you're using.

They're easy to open

The thought of heading to the bank to sit down and do reams of paperwork can be discouraging for many people. But high-yield savings accounts are easy to open and simple to use. There are both online banks and credit unions that service these types of accounts as well as brick-and-mortar institutions that can help get you started in person. Many will even provide debit cards for account holders to utilize as they would a traditional bank account. And you'll be able to track your savings performance with a banking app directly from your phone or tablet.

Not sure how much you'd earn from a high-yield savings account? You can easily explore your options - and potential interest rates - here now.

The bottom line

During times of inflation and high interest rates, many Americans look for any advantage they can get. High-yield savings accounts are a great alternative to pursue. They provide account holders with a unique opportunity to earn significantly more interest than they can with a regular account. They're also low-risk (and FDIC-insured) and are easy to open due to a wide array of both online and in-person institutions. Explore your high-yield options via the table below and start earning more money now!

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