When it comes to building a solid financial foundation, one of the core elements is a savings account. A traditional savings account is a great way to keep your money safe, however, consumers are often looking for better ways to grow their money while keeping it secure, often with a high-yield savings account (HYSA).
This type of savings account offers significantly higher interest rates than a traditional savings account while also giving you easy access to your funds. Additionally, you’ll benefit from compound interest, allowing your money to grow at a much quicker rate.
Read more: What Is Compound Interest and How Can I Earn It?
Benefits of a HYSA
1. Earn above average interest rates
A HYSA is a great way to earn an above average interest rate on a savings account. The higher interest rate on a HYSA will help your money grow much more quickly. The more money you put into your account, the faster it will grow from the rate and from compound interest. This type of savings account is great for a rainy-day fund or for large purchases, like a down payment on a new house or car.
2. Rest easy as funds are FDIC-insured
Another benefit of a First Bank High-Yield Savings Accountˡ is that your funds are insured by the Federal Deposit Insurance Corp. (FDIC) for up to $250,000. FDIC-Insured accounts include checking accounts, savings accounts, money market deposit accounts, and Certificates of Deposit (CDs). The $250,000 insurance is per depositor and for each account ownership category.
Learn more: Yes, Banks Are the Safest Place for Your Money: Find Out More About FDIC Insurance.
3. Enjoy flexibility and accessibility
If you’re looking for accessibility to your funds for any expense that may arise, a HYSA gives you the flexibility to still access your funds. However, it’s best to leave your funds in the account for as long as possible to allow your balance to grow. If you’re interested in securing a higher fixed rate for a specific amount of time, consider opening a high-interest First Bank CD.
Common Uses For a HYSA
1. Contributing to an emergency fund
A HYSA is a great option for those looking to establish or continue building on their current emergency savings. The flexibility of the account allows you to withdraw funds quickly if you need to cover any unexpected expenses. Most experts recommend that you have several months of living expenses saved for urgent situations, like medical emergencies and car or home maintenance.
2. Saving for short-term goals
Are you saving for a new home, a vacation, or a wedding? Your funds will grow quicker with a HYSA, allowing you to maximize your savings potential toward your short-term goals.
3. Increasing supplemental savings
Do you have some extra cash to put in the bank? Consider placing it in a HYSA. You’ll start receiving higher returns on your idle cash, the money will grow safely with FDIC Insurance, and you’re guaranteed growth.
A high-yield savings account is more than just a place to keep your money safe. It’s a powerful tool for helping you achieve your financial goals. Whether you’re looking to build up your emergency fund, save for a big purchase, or start earning more on your money, a First Bank High-Yield Savings Account in Missouri, Illinois, and California provides safety, accessibility, and competitive returns.
This type of savings account offers significantly higher interest rates than a traditional savings account while also giving you easy access to your funds. Additionally, you’ll benefit from compound interest, allowing your money to grow at a much quicker rate.
Read more: What Is Compound Interest and How Can I Earn It?
Benefits of a HYSA
1. Earn above average interest rates
A HYSA is a great way to earn an above average interest rate on a savings account. The higher interest rate on a HYSA will help your money grow much more quickly. The more money you put into your account, the faster it will grow from the rate and from compound interest. This type of savings account is great for a rainy-day fund or for large purchases, like a down payment on a new house or car.
2. Rest easy as funds are FDIC-insured
Another benefit of a First Bank High-Yield Savings Accountˡ is that your funds are insured by the Federal Deposit Insurance Corp. (FDIC) for up to $250,000. FDIC-Insured accounts include checking accounts, savings accounts, money market deposit accounts, and Certificates of Deposit (CDs). The $250,000 insurance is per depositor and for each account ownership category.
Learn more: Yes, Banks Are the Safest Place for Your Money: Find Out More About FDIC Insurance.
3. Enjoy flexibility and accessibility
If you’re looking for accessibility to your funds for any expense that may arise, a HYSA gives you the flexibility to still access your funds. However, it’s best to leave your funds in the account for as long as possible to allow your balance to grow. If you’re interested in securing a higher fixed rate for a specific amount of time, consider opening a high-interest First Bank CD.
Common Uses For a HYSA
1. Contributing to an emergency fund
A HYSA is a great option for those looking to establish or continue building on their current emergency savings. The flexibility of the account allows you to withdraw funds quickly if you need to cover any unexpected expenses. Most experts recommend that you have several months of living expenses saved for urgent situations, like medical emergencies and car or home maintenance.
2. Saving for short-term goals
Are you saving for a new home, a vacation, or a wedding? Your funds will grow quicker with a HYSA, allowing you to maximize your savings potential toward your short-term goals.
3. Increasing supplemental savings
Do you have some extra cash to put in the bank? Consider placing it in a HYSA. You’ll start receiving higher returns on your idle cash, the money will grow safely with FDIC Insurance, and you’re guaranteed growth.
A high-yield savings account is more than just a place to keep your money safe. It’s a powerful tool for helping you achieve your financial goals. Whether you’re looking to build up your emergency fund, save for a big purchase, or start earning more on your money, a First Bank High-Yield Savings Account in Missouri, Illinois, and California provides safety, accessibility, and competitive returns.
This First Bank product is insured by the FDIC. FDIC deposit insurance protects money you hold at an FDIC-insured bank in deposit accounts, such as a high-yield savings account or a CD. The standard FDIC deposit insurance amount is $250,000 per depositor, for each account ownership category per insured institution. For more information, visit www.fdic.gov.