Take advantage of this High Yield Savings Accounts
Don’t let your money just sit in your regular old savings account, only making 0.5% interest.
If you have not yet jumped on the high yield savings account bandwagon yet, you need to. Being a working mom means juggling schedules, school drop offs and pick ups, sports/activities, school volunteering, preparing dinner and much more, it also means somethings are put on the back burner till you have more time and energy to devote to them. However, don’t miss out on the set it and forget it way to make money. I am going to explain the pros to having a high yield interest account like Sofi!
What is a High Yield Interest Account (HYSA)?
A high Yield Interest account is a saving account usually set up with an online bank, like SOFI. It is going to earn you more interest on the money you have sitting in the account than your average bank, which is typically 0.01%. If you are familiar with CDs, it is like those except you have complete access to this money if you need it at any point.
I wouldn’t completely get rid of you physical brick and mortar bank all together because you may still need to withdrawal a large amount of cash suddenly. Say you want to get a couple of trees removed or a project done in your home and the contractor offers a discount for cash.
The Magic of Compound Interest- this is where it’s at!
Here’s a quick example:
Let’s say you keep $10,000 in a regular savings account at 0.01% interest. After a year, you’ve earned... $1.
With a HYSA like SOFI you’re earning 4.5% APY, you’d earn about $450 in the same time.
That’s grocery money. That’s dance class tuition. That’s progress. The more money that sits in there the more it will earn.
*Pro-Tip: Use that interest you are gaining every month to make small one time payments to your credit card debt or car loan. Free yourself from consumer debt
*This post contains affiliate links. This means that if you click on one of the links and make a purchase, I may receive a small commission at no extra cost to you. I only recommend products or services that I genuinely believe will add value to my readers.
Pros to Sofi Bank:
Savings Vaults: Categorize your savings, each vault will still earn the high interest rate. I’ve used these vaults to help save for vacations, taxes, or fun spending money.
Easy Transfers between banks: Sofi uses a secure platform to make money transfers seamless
Credit Tracking: Sofi does an excellent job at tracking your credit score as well as gives you insight on how to improve your credit score by breaking down your credit factors into payment history, credit utilization, age of credit, inquiries, and derogatory marks. If you need help understanding your credit score Sofi may be what you need to help get your credit back on track.
Spending insights: This is one of my favorite advantages to Sofi. This feature tracks your spending, breaks down your cash flow for each month allowing you to see if you are over or under budget for the month.
Opening a high-yield savings account might seem like a small step that won’t earn much in the beginning but it’s more about building momentum. Every hard earned dollar you save should be earning it’s keep. Make the switch and put your money to work earning interest while still accessible.
