Recently, high-yield savings accounts have been receiving a lot of attention. Because interest rates are currently high, people have been touting them as a way to earn passive income. But is it worth it?
What is a high-yield savings account?
A high-yield savings account earns a higher annual percentage yield (APY) than the national average. APY is the rate of return on the money in your account that you’ll earn over a year. This includes your original deposit and the amount of compound interest (the interest you make on the interest). Many high-yield savings accounts compound their interest daily, but not all do.
What are the rates for a high-yield savings account?
With varying rates, it is essential to understand the terms of your high-yield savings account. High-yield savings accounts have a variable APY, which can change without warning—for better or for worse. Check out the latest Coast Central Credit Union Membership Savings Account and Special Savings Account rates for balances up to $9,999.
Can you lose money in a high-yield savings account?
Most high-yield savings accounts are insured by the National Credit Union Administration (NCUA) for up to $250,000 (and some for even larger amounts). Check to make sure your account is covered!
What are the best high-yield savings accounts?
You can do an internet search for current high-yield savings accounts. Get started by checking out the following:
What should I do before I sign up for a high-yield savings account?
- Be sure to carefully read the terms, including the fine print.
- Is there a minimum balance?
- Are there any hidden fees?
- Are there requirements, such as setting up direct deposit for your account?
- Are there perks? For example, the account might be paired with a checking account with a good interest rate. It could have a sign-up bonus, or it might have a nifty way to organize your savings within the account.
Is a high-yield savings account right for me?
Over time, you can make more money by investing in stocks, bonds, or mutual funds than you can with a high-yield savings account. However, a high-yield account can be a good way to save for a short-term or long-term goal—such as a houseboat on Trinity Lake, a down payment on a Victorian home in Ferndale, or an emergency fund for yourself or your family.
As with all financial matters, do some research for yourself to find out what is best for you and your money!
Consider the benefits of a Coast Central Credit Union Membership
If you live or work in Humboldt, Del Norte, or Trinity counties, you’re eligible to become a member of Coast Central Credit Union. Membership includes a savings account with the following benefits:
- Earn quarterly dividends.
- Pay no monthly service fee.
- Make unlimited deposits and withdrawals.
- Use on-the-go Online & Mobile Banking.
In addition to the Membership Savings account, Coast Central offers Special Savings, for specific savings goals, and Liquid Assets, which offers higher dividends with liquidity. Check out all the savings options.
At Coast Central, we can help you build a secure financial future and enable you to achieve your goals, another way YOU are central!