Back to Stories

5 Reasons to Choose a High-Yield Savings Account in Any Economy

Make progress toward your financial goals.

A woman standing running a small business. She has dark hair that she is wearing down around her shoulders and is wearing a striped t-shirt, blazer, and slacks. She is talking on the phone and using a laptop computer.

As an individual, you may not be able to control a lot of things— the cost of groceries, the movements of the stock market, the traffic on your commute. But you can control what you do with your money. And there are several reasons to consider a high-yield savings account regardless of economic volatility or interest rate changes.

Having a percentage of your funds in a high-yield savings account provides a reliable and accessible counterweight to the other parts of your financial portfolio that may be more affected by economic conditions. Here’s why:

Your Money Is Always Protected

The funds you deposit in a high-yield savings account at an FDIC-insured bank (like Growth Savings) are protected up to the established limit by the full faith of the U.S. government.

Not only is your money protected by the FDIC, but it’s also typically unaffected by stock market fluctuations. Your interest rate may change, but your account balance will only increase as it earns interest and will never decrease unless you choose to transfer funds out of the account.

You Can Earn a Competitive Interest Rate

The cyclical nature of the financial system means that interest rates will inevitably fluctuate from time to time.

Even when interest rates dip, high-yield savings accounts are known for providing market leading interest rates compared to traditional savings accounts. Getting a high yield return on your savings may help you keep up with inflation and allow your dollars to grow further.

You’re Always Making Progress Toward Your Financial Goals

Once you’ve created the good habit of saving with a high-yield account, you can keep making forward progress towards your financial goals.

If, for instance, you are saving money for a new car, an emergency fund, a vacation, or home renovations, you can keep working towards those goals by continuously adding funds to your savings account. With recurring deposits in your high-yield saving accounts, you can ensure that regardless of what’s happening in the world, you’re moving closer to your personal financial goals.

Your Money Is Available When You Need It

Funds in a high-yield savings account are liquid, meaning you can always access them when you need them. When you make a deposit, you don’t have to worry about tying up your money in an account from which you can’t access it without paying a penalty.

With Growth Savings, there are no fees for transferring your money, which allows you to access your money when you need it. So, whenever you’re ready to buy the car, take the vacation, or do whatever you’ve been saving for, you can easily access those funds to make it happen.

You’ll Have Peace of Mind

Building savings in a safe, accessible account is an important step toward taking control of your finances and your future, and it can help you develop a sense of peace about your finances.

A study from the Consumer Financial Protection Bureau showed that people who have the amount of savings they need set aside experience significantly greater financial well-being than those who do not have the savings they believe they need.

Take advantage of a high-yield savings account like Growth Savings to take control of your future and to ease your mind.

Disclaimer: This article is for general information and education only. It should not be considered financial or tax advice.

Related Content