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Is Opening A High-Interest Savings Account Right For You?

Jun 27, 2019
Posted by: Stearns Bank
Woman looking at savings account options at paper

Saving money is hard work. You diligently sock away every extra dollar, only to watch your balance inch up at a snail's pace. Why settle for lackluster returns when your savings could be growing so much faster?

It may be time to upgrade to a high-interest savings account.

Now, high-yield savings aren't for everyone. But if you're looking to pump up your savings, they can offer significantly higher rates than standard accounts. This compounding effect can help grow your money faster over time.

Before you switch, it's smart to weigh the options. In this blog, we'll explore whether a high-yield savings account is the right move for your money.

Maximize Returns With High-Interest Savings

Unlike standard accounts earning next to nothing, high-yield savings offer much higher interest rates — typically 0.50% Annual Percentage Yield (APY) or more. This means your money grows faster thanks to the power of compound interest over time.Account chart indicating growth

Let's look at the numbers. With a standard 0.01% APY on a $10,000 deposit, you'd earn a measly $1 after one year. But at 1.00% APY on that same $10k, you'd earn $100 annually. Now imagine if you kept growing that balance. The earnings difference starts to add up!

With a high-yield savings account, the security of your money also remains a top priority. Stearns Bank high-interest accounts come with FDIC insurance protection on deposits up to $250,000 per account holder. And, for accounts that exceed the $250,000 FDIC limit, Stearns Bank offers ICS® (Insured Cash Sweep) and CDARS® (Certificate of Deposit Registry Service).

Features Beyond Just Interest Rates

You deserve more than just a high-interest rate from your savings account. The right account provides so much more — convenient access, robust tools, and personalized service to simplify and optimize your money management.Man sitting on his phone in a coffee shop

With the right high-yield account, you can:

  • Access your savings anytime, anywhere: An ATM/debit card gives you 24/7 access to your hard-earned money for those unexpected expenses or opportunities. 
  • Monitor your money on the go: User-friendly mobile and online banking puts account oversight right at your fingertips. Easily check balances, transfer funds, set alerts — manage your savings no matter where you are.
  • Get expert support when you need it: Experienced professionals are available for personalized guidance on getting the most out of your account. 

The top high-interest savings accounts do more than just offer competitive returns. They provide the freedom, control, and assistance you deserve to simplify and optimize how you save and manage money. 

Key Factors To Consider

Finding the right high-interest savings account comes down to a few key factors. Let's walk through them together.Man holding ipad, comparing account options

First, compare APYs across banks. The APY shows how much interest your money could earn per year, so finding the highest rate is key to maximizing your returns.

Next, check the minimum balance requirements and make sure you can consistently meet them. Otherwise, you may risk monthly maintenance fees which would eat into your interest.

Speaking of fees, aim for minimal or no fees at all. It's in your best interest to avoid accounts with sneaky hidden charges. 

The goal is to find the winning combination of top APY, low fees, and convenient features tailored to your needs. Taking the time to understand these key factors will set you up to make the savviest choice for your hard-earned money.

Of course, you'll likely still have questions even after comparing options. So also consider each bank's live customer support availability. Stearns Bank provides readily available phone banking specialists to answer any questions and offer personal guidance on making the smartest account decision for your money.

Alternatives Like CDs

Certificates of deposit (CDs) may seem appealing with their higher interest rates. But before locking up your cash, make sure you understand the tradeoffs.

CDs require you to keep your money parked for a set period, usually 3 months to 5 years. So if you need the funds sooner, you may be out of luck. Withdrawing early means surrendering those returns you were after.

But for goals further down the road, CDs can be a smart play. Let's say you're saving up for a house or dream trip in a few years. A CD would allow your savings to grow faster during that waiting period.

Explore Stearns Bank’s High-Interest Savings Accounts

As you can see, high-interest savings accounts offer significant benefits that make saving money work harder for you. With higher interest rates and the power of compounding, your deposits can grow much faster over time.

That's where Stearns Bank comes in. Our Above the Norm Personal Market Savings account offers interest rates that help maximize your returns. We combine digital convenience with individualized support from banking experts who get to know you and your financial situation.

Whether you're building an emergency fund, saving for a special purchase, or just want an easy place to stash extra cash, we have the right high-interest account for you. Don't let your money sit collecting dust — put it to work!

Contact us today to learn more about our savings accounts, take control of your finances, and start growing your savings faster.


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