RodeoBob t1_jd42c5g wrote
Reply to comment by mkhrrs89 in ELI5: How do high yield savings accounts work? What is APR & APY, and how does compounding quarterly vs monthly vs yearly affect the amount earned? If you open one, how often are there payouts? by mkhrrs89
High yield savings accounts tend to have more restrictions than regular savings accounts.
They often require a higher minimum balance, and allow fewer transactions per month. Going below the minimum balance may trigger a monthly fee, a lower rate, or both.
Savings accounts of any kind are a good option for mostly liquid savings that can be fairly quickly accessed. If you have a large amount of cash that you won't need right away, there are better investment options.
mkhrrs89 OP t1_jd488vx wrote
interesting. Idk if what I have is considered "large" right now, but what would those better investment options be?
The only other things I have looked into are ETFs as pretty stable options and REITs that can pay out bigger dividends
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