Is a high-yield savings account worth it?

Depending on your needs, yes – a high-yield savings account can be a worthwhile place to put at least some of your money. While other options – such as investing in the stock market – may offer the potential of greater returns over time, those returns aren't guaranteed. People can and do lose money on stocks and other investments every day. High yield savings accounts are a good place to keep money – especially funds you may need to access on short notice – because they provide three key benefits:

• Your money is safe. Funds in a credit union high yield savings account are federally insured by the National Credit Union Administration (NCUA) to at least $250,000. It's an extremely low-risk investment.
• Your money is guaranteed to grow. Savings accounts promise a guaranteed rate of growth – in the form of interest or dividends (when the account is with a credit union, like Affinity). While it may be more modest than the return you could receive elsewhere, there's virtually no risk involved, and with compound interest your savings are certain to grow over time. The same cannot be said of most higher-yield investments.
• Your money is accessible. Funds in a high-yield savings account are liquid – you don't have to sell anything or make a complicated transaction to get to your money. And with Affinity, you can use your ATM card to get cash from your savings account at any ATM, or transfer money any time using our advanced mobile banking app.

What is a bank savings account?

A bank (or credit union) savings account is one of the most basic financial products available. Bank accounts provide a safe place to deposit your money and earn interest at a modest rate. In the U.S., bank and credit union savings accounts are federally insured for up to $250,000 per account.

Can you make money off of a high-yield savings account?

Yes, because you're guaranteed to make a certain amount of interest. As long as there aren't fees to eat away at the balance in your account, you will make money. That's why there are no monthly fees with Affinity savings accounts if you enroll in online eStatements. If you want paper statements, there is a $2 monthly fee.

What is the difference between interest rate and APY (Annual Percentage Yield)?

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What account type is best for savings?

Affinity offers a variety of account types to help members save money, because no single option is best for all personal finance needs and situations. For example, our SmartStart account is exactly that – a smart way to start saving – because you'll get 2.00% APY (annual percentage yield) on your first $5,000. Other accounts, such as MoreSavings, offer higher rates for higher balances, and our Certificates of Deposit may provide higher yields for those willing to lock up funds for a period of time. We also offer tax-advantaged IRA accounts for retirement savings; Coverdell Education Savings Accounts (ESAs) to help save for college; and Health Savings Accounts (HSAs) that let members with high-deductible health plans set aside pre-tax dollars to use for qualified medical expenses.