For those old enough to remember, a “High Yield” Checking or Savings account used to be a place to put your money when you needed to gain interest income while still having access to the cash in your account.
These accounts encouraged individuals and businesses to “lend” their money to banks or credit unions and the institutions provided solid interest income in return for leaving the monies in the account. The banks and credit unions made their money by lending the money to local community businesses and individuals.
These days many banks and credit unions pay little or no interest on money left in their accounts. And some charge more in annual fees than the interest received on the cash in your account.
One alternative to a checking and savings account is a high yield brokerage account. Some brokerage accounts allow account owners to gain yields closer to what the banks are able to provide in the days of old while still allowing access to the money via a debit card or checking account.
It is important to know a few things about putting cash into any account with the goal of obtaining better interest income.
Contact us today to find out if you may be able to earn a higher interest rate than your bank or credit union currently provides.