A high-yield savings account delivers exactly what its name suggests: higher yields on your deposits. Indeed, high-yield savings accounts “can pay up to 10 to 12 times the national average of a standard savings account,” said Investopedia.
This category of savings accounts are typically offered by online banks and credit unions, as opposed to traditional brick-and-mortar banks. This is often possible to do because these online institutions have fewer overhead costs. But otherwise, high-yield savings accounts tend to work in much the same way a savings account usually does — you deposit money, and in exchange, the bank pays you interest.
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