What are high yield savings accounts?
A high yield savings account is almost the same as any other savings account that banks offer. The difference is, instead of you earning a very small, let’s say, 0.25% APY (annual percentage yield) you are given a much heftier percentage, for example 2.00% APY. That means if your account balance were $1,000.00, after a year you will have earned about $20.00 in compounded interest. Whereas with the lower APY you will have earned only $2.50 in a year.
