Online high-yield savings accounts
What are your thoughts on and advice for utilizing an online high-yield savings account as an alternative to a regular bank savings.
Thank you for your time.
Terry Says
I tend to avoid them. Higher yielding accounts are tempting for a reason — the institution wants the money. But the time you spend wiring money to them and getting it back can often negate the rate advantage. In addition, some of these are “brokered CDs” or have other features that are hidden in the fine print. If you’re doing this, just be sure you are buying an FDIC-insured CD and not some other type of “certificate.”
And consider T-bills: https://www.terrysavage.com/t-bills-beat-cds/
