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Why you should deposit $15,000 into a high-yield savings account

Putting $15,000 into a high-yield savings account could be a smart financial move. Getty Images

One key part of any financial plan is knowing what to do with the wealth you keep in cash. Having sufficient cash on hand is important because you never know when you'll face an emergency that requires money. And, whether it's a medical bill, auto repair or a broken hot water pump, the last thing anyone wants is to liquidate investment holdings in a rush. 

But it's just as important to make the most of the funds you hold in cash. Holding money in a checking account or another no-growth account means your money is losing value due to inflation. One smart way to store money in cash is to use a high-yield savings account. Putting just $15,000 into a high-yield savings account right now could make a big difference to your long-term financial plans.

Find out the rates you could get on your savings with a high-yield savings account.

Why you should deposit $15,000 into a high-yield savings account

There are plenty of reasons why putting $15,000 into a high-yield savings account today is a good idea, including:

Rates are high right now

One of the most important factors when looking for a high-yield savings account is a favorable interest rate. This determines how much money you'll earn in interest as your money sits in the bank. 

And, right now, interest rates are very high — the result of repeated hikes of the federal funds rate by the Federal Reserve. It's currently possible to find high-yield savings accounts with rates between 4.25% and 5.27%, and online lending institutions tend to offer higher rates than traditional banks. This is because online banks don't have the overhead that banks with physical locations have, and can pass the savings on to their customers.

Shop for a high-yield savings account online now.

The rate forecast looks good

There is no way to know what rates will look like in the future, whether six months, one year or 10 years from now. Generally speaking, though, the interest rate environment will likely stay favorable for savers, at least for the short term.

While inflation has dropped dramatically, it is still not at the Fed's preferred 2% rate. And, Fed chair Jerome Powell has indicated that he is open to another rate hike if economic indicators indicate it should happen. 

But even if there isn't another rate hike, there likely won't be drastic rate cuts in the near future — not unless something drastic happens. For this reason, high-yield savings accounts will likely maintain their allure for a while.

You have flexibility

With a high-yield savings account, you maintain access to your money. Some high-yield savings accounts even come with an ATM card for withdrawals and deposits, as well as online access.

That can make high-yield savings accounts more attractive than other savings products like certificates of deposit (CDs). With a CD, you agree to keep your money in the bank for a set period, and you generally have to pay a penalty for early withdrawals. If you want to earn solid interest while maintaining liquidity, a high-yield savings account is the route to take.

The bottom line

Putting $15,000 into a high-yield savings account right now could be a great move for your financial future. You'll earn solid returns, your money will be secure and you'll still have access to all of the cash you deposit, plus interest, if you need it.

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