3 thoughts on “How Does a Savings Account Interest Work?”

  1. I used high yield savings accounts more when interest rates were low/zero. I still have one with barely any money in it. The same place where I have a couple of certificates of deposit. Money market funds have become rate competitive again and they allow me to keep my cash with my broker for convenience. For anyone getting started and trying to build an emergency fund, high yield savings as you outline here are a great way to go. Tom

  2. I believe you got you utilize savings accounts to help grow your money. It shouldn’t your main source for it but it should be one of the accounts you own. Storing your emergency fund in a savings account is the practical way to go since you can grow your money and have easy access to it in a emergency situation.
    I have a couple of HYSAs, one for emergency and the other for down payment on the home we will buy. I think the rate is above 2.20% interest right now which is better than a couple years ago when it was under 1%


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