What Is a High-Yield Savings Bank Account?
When it comes to personal finances, it's no secret that stashing away cash for an emergency is always a good idea. An old rule of thumb says that you should save up at least three months’ worth of living expenses just in case the unexpected should strike. And, experts now say it’s better to keep enough to cover six months’ worth of living expenses on hand so you’re even more thoroughly prepared for a potential financial downturn.
But where should you put that extra money you're saving for emergencies — or the money you’re setting aside for other financial goals? A high-yield savings account can be a solid choice that helps you earn while you save. To decide if this option is right for your needs, take a look at this overview of what a high-yield savings account is and how it differs from traditional savings accounts.