However, that won’t happen if you just let it sit in a traditional checking or savings account that yields next to nothing.
High-yield online savings accountsThe average annual percentage yield on bank savings accounts was just 0.52% as of March 13, according to Bankrate.
As with any bank savings rate, high-yield savings account rates can change overnight, and the bank may not alert you when it lowers it.
But don’t confuse money market accounts with money market mutual funds, which invest in short-term, low-risk debt instruments.
Unlike money market deposit accounts, money market mutual funds are not insured by the FDIC.
Persons:
”, Ted Rossman, ” Rossman, Ken Tumin, Schwab, you’d, Tumin, Doug Ornstein, Andy Smith, Ornstein, doesn’t, ” Smith
Organizations:
New York CNN, Bankrate, JPMorgan Chase, Bank of America, Fidelity, TIAA Wealth Management, FDIC, Securities Investor Protection Corp, Edelman, AAA
Locations:
New York, Wells Fargo, United States