Not using a high-yield savings accountHigh-yield savings accounts are a no-brainer for Allocca, who says that there's "no advantage to a traditional savings account."
High-yield savings accounts are typically offered by online banks or credit unions, and usually come with higher interest rates than traditional savings accounts offered by big banks.
Currently, you can find high-yield savings rates over 5%, compared with the 0.58% average for savings accounts as a whole.
One trade-off is that smaller banks or credit unions might take longer to process a withdrawal from a high-yield savings account.
"I like to call high-yield savings accounts 'inconvenient savings,' because they are still accessible, but totally separate and disconnected from your checking account," she says.
Persons:
Michela Allocca, —, Allocca
Organizations:
CNBC