High-yield savings accounts can help your money grow faster than traditional savings accounts, but many people mistakenly think that the returns these types of accounts can deliver are too good to be true.
Like traditional savings accounts, high-yield savings accounts are backed by the Federal Deposit Insurance Corporation, which is an independent U.S. government agency.
Online banks that offer high-yield savings accounts tend to have lower overhead costs than traditional banks, since they aren't paying for physical locations and other expenses.
But high-yield savings accounts offer APYs as high as 5% or 6%.
But before you move over your funds, be sure to do your research on the bank that's offering the high-yield savings account you're interested in.
Persons:
Colby Dickson, Greg McBride, McBride, Jim Cramer, Ben McKenzie, Farnoosh
Organizations:
Northwestern Mutual, CNBC, Federal Deposit Insurance Corporation, FDIC
Locations:
U.S