Investing term

What is High-yield savings account?

A bank account that pays meaningfully more interest than a standard checking account.

A high-yield savings account is a bank account paying meaningfully more interest than a standard checking or savings account, while keeping your money safe and instantly accessible. It's the natural home for an emergency fund or short-term cash — earning a real return without market risk. Rates move with central-bank rates, so they rise and fall over time.

For example

Parking your $5,000 emergency fund in a 4.5% high-yield savings account earns about $225 a year, versus near-zero in an ordinary account.

High-yield savings account is taught hands-on in Stage 1 — Money, Goals & Your Financial Foundation.

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Related terms

APRAnnual Percentage Rate. The yearly interest cost of a loan, including most fees.CompoundingWhen your returns earn returns of their own, so money grows faster the longer it's invested.Emergency fundCash reserved for unexpected expenses, usually 3–6 months of your usual spending.Employer matchFree money from an employer that matches part of what you contribute to a workplace retirement plan.
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