Savings Accounts

If the checking account is your wallet, the savings account is a locked safe in your house. It is mainly meant for the money you set aside intentionally for future big purchases or emergencies, and is not something you dip into casually.

When you deposit money in a bank, you are actually lending it to them. In return, the bank usually pays you interest which is measured by APY (annual percentage yield):

• Most traditional banks pay almost nothing. Checking accounts often earn around 0.01% APY, meaning $1,000 earns about $0.10 a year. This is a low amount.
• On the other hand, high-yield savings accounts (HYSAs) that are typically offered by online banks often pay 3–5% APY, earning $30 to $50 per year on the same $1,000. Online banks can offer higher rates because they have lower operating costs and can pass their savings on.

How To Get Started With Savings Accounts:

• Open a high-yield savings account (Search “Best HYSA Rates”).
• Link it to your checking account.
• Set up automatic monthly transfers, even for small amounts (those will add up over time).