A high-yield savings account grows your money faster than a typical savings account.
A high-yield savings account has a higher interest rate than a typical bank savings account.
A financial planner says they work best for short-term savings goals, like planning for a vacation.
Most high-yield savings accounts have no minimum deposit required to open the account.
If you’re having trouble saving toward your future goals, finding the right place to stash your money might be the key to changing your habits once and for all.
For long-term goals, like retirement, investing your money is best — you have enough time to weather ups and downs in the market. But keeping money you need in the next couple of years — like your emergency fund or travel money — in a brokerage account just isn’t wise, since your money can lose value in the short term and you may have to pay a higher tax rate to withdraw your funds.
For short-term goals, choose a high-yield savings account, says financial…
This article was written by [email protected] (Leo Aquino, CEPF) and originally published on www.businessinsider.com