High-yield savings accounts offer impressive returns right now, but you should avoid making these common mistakes.
In a bid to bring inflation down to its 2% target, the Federal Reserve increased its federal funds rate several times over the past couple of years, leading to today's high-rate environment. In turn, the rates offered on credit cards, auto loans and mortgages are higher today than they were in recent years, making it expensive to borrow money. But savers can take advantage of the upside to the current rate environment: high interest rates on deposit accounts.
So, it's typically a good idea to compare your account options regularly to ensure that you're not missing out on a great rate elsewhere — even after you open your account. While you probably don't need to compare your options daily, it could benefit you to take a look at what's available about once a month. Keeping too much money in your accountHigh-yield savings account returns are variable, meaning that your account rate will change based on the overall rate environment.