How much money should I keep in my online saving account?

We recommend keeping any money you have set aside for a rainy day or are saving for a large purchase in an online saving account with a high APY. All banks have different requirements that must be met and maintained to receive interest and avoid fees. Some have a minimum balance requirement ranging anywhere from $0 – $1000+, others require a monthly min deposit – so you will want to select your account accordingly.

Are online savings accounts safe?

As long as your online savings account is insured by the FDIC (Federal Deposit Insurance Corporation) your money is safe even if your financial institution goes under. This is the same level of protection offered at any brick-and-mortar FDIC insured bank – typically funds up to $250,000 per person (and account) are fully covered.

How much will my money grow in a savings account?

This will vary depending on the bank and the market. Online savings accounts are a great option because many of them offer a high APY (annual percentage yield) – typically the higher the yield the more your money will grow. However, the amount of money you deposit (and maintain) in your account can have an effect as well.

What does “high yield” mean?

When it comes to digital savings accounts, you’ll notice the term “high yield” floating around. Simply put, <a>high yield savings accounts </a>offer higher interest rates than traditional savings accounts. They are called as such because they produce a greater return on your mone

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Amber Vandever

Amber Vandever is a freelance writer. Her work has been published on WealthRocket and Truly Mama.

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