Is a high yield savings account right for you?

When it comes to savings accounts, most banks are still offering the same low yield they’ve had for years. The reason why big banks have kept their low yield on savings accounts is that they generally don’t need new clients, and raising the rates on savings will cause a decrease in profitability. While some wonder about the safety of high-yield savings, many have already made the switch to these smaller banks. They are FDIC insured (many up to $2M), which makes them safe. However, even though a yield of almost 5% can be very tempting to be used as an investment, we recommend that you only keep money that you will need in the next couple of years in your savings account. From a long-term perspective, investing your money can likely be more beneficial and profitable for you.
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Casey Smith
President, Wiser Wealth Management

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