Since a standard savings account often earns little interest and can potentially lose money over time due to inflation, investors may opt to open a high-yield savings account. Many of these accounts can offer the same FDIC coverage as banks, pay significantly higher interest than their standard counterpart, and therefore help investors meet their goals faster.
High-yield savings accounts are available via online or brick-and-mortar banks that pay a high interest rate. When shopping for one of these accounts, be sure to gather information about the following critical features:
This type of account should just be one part of your overall financial portfolio. Work with your advisor to determine how you can best use one to complement your other investment strategies.