A high-yield savings account is a type of savings account that offers a significantly higher interest rate compared to traditional savings accounts, allowing your money to grow faster through higher annual percentage yields (APYs)

. These accounts typically pay interest rates that can be 10 to 25 times greater than the national average for regular savings accounts, while maintaining the same low risk and federal insurance protections, such as FDIC insurance up to $250,000 per depositor

. Key features of high-yield savings accounts include:

• Higher interest rates: They provide much better returns than standard savings or checking accounts, often with APYs exceeding 4% in some cases

• Accessibility: Unlike certificates of deposit (CDs), you can make deposits and withdrawals relatively freely, though some banks may limit the number of withdrawals per month (usually around six)

• Safety: Funds are federally insured, making them a safe place to store money without the volatility associated with stock market investments

• Convenience: Many high-yield savings accounts are offered by online banks, which can provide higher rates due to lower overhead costs, and often include mobile and online banking access

These accounts are ideal for short- to medium-term savings goals such as building an emergency fund, saving for a down payment on a house, or other financial milestones where you want your money to grow safely but remain accessible

. In summary, a high-yield savings account is a safe, flexible, and effective way to earn more interest on your savings compared to traditional savings accounts, making it a useful tool for growing your money while keeping it accessible