Caryn Ebony

If you have a chance to open a high yield savings account, you should take advantage of the opportunity. With that said, you should make sure you use the account in the most effective way. Save for Major Expenses If you have a significant expense that you're saving for, such as the down payment on a future home, a high yield account can help you to speed up the savings process. With the higher API rate that these types of accounts offer, you'll be able to save up the money you need in a shorter period of time. Remember, the more money you put into a high yield account, the more you'll be able to earn back. Click here to read more about how to create Climate-Friendly Checking and Sustainable Savings Accounts Use the Account as Your Emergency Fund It's always smart to have money set aside for an emergency. If you run into car trouble or need to make unexpected home repairs, you'll want to make sure you can cover these costs without any issues. You'll be able to build a much more substantial rainy day fund if you put all of that money into a high yield account. Since you'll only be withdrawing the money in case of an emergency, you can expect your savings to grow and grow. Set Short-Term Savings Goals A high yield savings account isn't usually the best option for retirement savings. There are other ways to invest your money that will offer you a higher return. However, it is an efficient way to work towards short-term goals. If you want to save up for a vacation in the next year or two, for example, putting that money into a high yield account will ensure that you have extra cash to play with. The money your account generates for you could help to cover a dinner out or pay for souvenirs!