What Is a High-Yield Savings Account [Infographic]

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Infographic on high-yield savings accounts

What is a high-yield savings account? As its name suggests, it is a savings account that typically yields more in interest than a standard savings account. Here are eight things to know about a high-yield savings account.

About the author:

Sean P. Egen

After realizing he couldn’t pay back his outrageous film school student loans with rejection notices from Hollywood studios, Sean focused his screenwriting skills on scripting corporate videos. Videos led to marketing communications, which led to articles and, before he knew it, Sean was making a living as a writer. He continues to do so today by leveraging his expertise in credit, financial planning, wealth-building, and living your best life for Credit One Bank.

This material is for informational purposes only and is not intended to replace the advice of a qualified tax advisor, attorney or financial advisor. Readers should consult with their own tax advisor, attorney or financial advisor with regard to their personal situations.

What’s the Difference Between a High-Yield Jumbo CD and a Regular CD?

Certificates of deposit (CDs) could be a good investment option if you have a large sum of cash and a short-term savings goal. These federally insured, low-risk investments offer a predictable fixed rate of return and allow you to bypass broker commissions by investing directly with a bank or credit union.

What Percentage of My Long-Term Investments Should Be in Cash?

Many experts recommend keeping at least three to six months of living expenses in cash in an emergency fund that can be easily accessed in case of an unexpected setback such as a serious illness, injury, or job loss. But what about your long-term investments? How much—if any—should be in cash?

Cash Investment Options

Balancing your investment portfolio can sometimes feel like walking a tightrope. Higher-risk investments may produce greater rewards, but leaning too much into one type of investment could also cause your investment portfolio to take a dive should that investment go south. Depositing some of your money into a cash investment account could help lessen some of your risk, especially if you’re older and looking to transition from riskier to less-risky investments. It’s also a decent move to make if you’re pausing to you get your bearings and want to protect your money and maintain stability as you ponder your next financial move. Just be aware that, in exchange for less risk, cash investments typically offer lower returns than higher-risk investments.

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What Is a High-Yield Savings Account [Infographic]

What’s the Difference Between a High-Yield Jumbo CD and a Regular CD?

What Percentage of My Long-Term Investments Should Be in Cash?

Cash Investment Options