High-yield savings accountsThe average interest rate on regular bank savings accounts is roughly 0.5% but can run as low as 0.01% at the biggest banks.
By contrast, the average on high-yield savings accounts is well over 4%, according to DepositAccounts.com.
If you leave it parked in a regular savings account at 0.5%, you’ll get $50 in interest for a year.
As with any savings account, banks can lower the rate they offer — also known as the APY — at any time.
Money market accounts and money market fundsAlthough money market deposit accounts and money market mutual funds are both generating yields competitive with the best high-yield savings accounts, there are important differences.
Persons:
—, It’s, ”, Greg McBride, you’ll, McBride, “, ” McBride, Ben Bakkum, Collin Martin, Martin
Organizations:
New, New York CNN, Federal Reserve, Federal Deposit Insurance Corporation, FDIC, National Credit Union Share Insurance, Securities Investor Protection Corporation, Treasury, Fed, Schwab Center, Financial Research
Locations:
New York, Schwab.com, United States