High-Yield Savings Accounts can be a good way to earn interest on your cash right now while maintaining an emergency savings fund.

First things first: Build your emergency savings fund

We will get the Number #1 most important priority for personal finances out of the way first! That is to build an emergency savings fund comprising 3-6 months of expenses. This is yours to manage and keep separate from other things and maybe other people, too, depending on your circumstances. You can fall back on this if needed and having this will give you the security that this is something you control and there is no (or very low!!) risk of losing it.

Having this emergency fund is of utmost importance and on top of that if you can earn interest on it, even better.

Where to keep your emergency savings fund? In a High-Yield Savings Account!

I will share here what I do and you can decide what you want to do. Of course, this is not any official finance advice, just what I would and do tell my friends personally. Please check all numbers discussed in this post yourself and do your due diligence.

It can be difficult to earn a decent return on your savings in regular bank accounts. However, there are a number of high-yield savings accounts available that offer significantly higher interest rates than traditional savings accounts.

One of the best high-yield savings accounts available is the Marcus account by Goldman Sachs. Marcus offers a 4.15% APY on all balances, up to maximum balance limits ($1 million per account I believe, please check the max yourself). This means that for every $100 you deposit in a Marcus account, you will earn $4.15 in interest per year.

There are no fees associated with the Marcus account, and there is no minimum balance requirement. You can also make unlimited withdrawals and transfers from your account. Please check this info, but this has been true for me so far!

If you are looking for a way to earn more on your cash, a high-yield savings account like the Marcus account is a great option. With interest rates on the rise, you can expect to earn even more on your savings in the future.

My personal referral link for Marcus: https://www.marcus.com/share/OIN-MIJ-PMH7

With this referral, Marcus gives a promotional higher rate I believe for a certain amount of time. I am only sharing this here if you need, no pressure to actually use it. You can also open an account with them without using this link and just go with their regular interest rate whatever they are offering at the time when you check. Just google them and you will see options.

Why Interest Rate Hikes Mean You Can Earn More from Your Cash

The Federal Reserve has raised interest rates several times in recent months making it difficult to borrow money and better to lend money! This is good news for savers, as it means that you can earn more on your cash.

When the Federal Reserve raises interest rates, it makes it more expensive for banks to borrow money. This, in turn, forces banks to raise the interest rates they offer on savings accounts.

As a result of the recent interest rate hikes, you can now earn significantly more on your savings than you could just a few months ago. For example, the Marcus account by Goldman Sachs currently offers a 4.15% APY. This means that for every $100 you deposit in a Marcus account, you will earn $4.15 in interest per year.

If you are looking for a way to earn more on your cash, a high-yield savings account is a great option. With interest rates on the rise, you can expect to earn even more on your savings in the future.

Here are some tips for choosing a high-yield savings account:

• Compare interest rates. Not all high-yield savings accounts offer the same interest rates. Be sure to compare rates before you choose an account.
• Look for no fees. There are a number of high-yield savings accounts that charge fees for things like ATM withdrawals or monthly maintenance. Be sure to choose an account that does not charge any fees.
• Consider your needs. Not all high-yield savings accounts are created equal. Some accounts have minimum balance requirements, while others offer unlimited withdrawals. Be sure to choose an account that meets your needs.

With so many high-yield savings accounts available, it is easy to find one that is right for you. By comparing interest rates, looking for no fees, and considering your needs, you can earn more on your cash and grow your savings faster.

For more personal finance tips, read about the personal finance strategy that I wish I had started sooner below!

Personal finance strategy: What I wish I did in graduate school