I'm going to share with you today one of my favorite things...FREE money! Everyone loves FREE money, right? The best way I have found to legally get free money every month is to have my Emergency Fund in a High Yield Savings Account.
So what is a High Yield Savings Account? It is simply a savings account that offers a higher than average annual percentage yield (APY). You’ll also want to find an account with no fees, that way you’re keeping more of your money.
Here’s an example of the difference between High Yield vs. regular interest rates. If you put $10,000 into a high yield savings account at 2% and don’t touch it, after one year you’ll have an additional $201.84 (FREE money). However, if you put it in a traditional account at .01% you’ll only make $1 in a year! You can see what a difference that makes, especially with compounding interest! Currently my High Yield Savings Account is paying .65%, which is way better than my credit union at .01%. AND you still have access to the funds easily if an emergency should arise.