Why you need a High Yield Savings

 I believe to be successful financially you should various types of accounts. Some for paying bills, some for saving and some for spending. For those savings accounts you should have various types.

There should be one linked to your checking that holds your emergency fund. This should hold no more than a couple thousand incase a true emergency arises and you need fund immediately.   

You should also have a high yield savings account. This would be where you keep the bulk of your savings, like that 3-6 month living-expenses-chunk. Why not keep it in your regular bank?

1.     You do not want that money available to be transferred in minutes. You want it to be close enough that should a situation arise and you need 3-6 months of living expenses available you can get it in less than a week, but you do not need it available to splurge shop on a rainy Saturday.

2.     If you need that money to sit and wait for an emergency, you should be earning the highest amount of interest possible! Most banks have an interest rate hovering around .001%-.002% but High Yield Savings Accounts have interest rates starting .85%!

Below you will find a chart that lays out the top HYSA according to Nerdwallet.com

 Ally Bank is another favorite! They currently have a .75% APR.

One of the reasons they are a favorite around here is because they allow you to visually split your money into buckets. If you are someone who like to have sinking funds or savings for various reasons, these are an amazing tool!