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[deleted] t1_jd3xwiw wrote

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mkhrrs89 OP t1_jd40dj8 wrote

So why do regular savings accounts exist? Seems like it would just be smarter for everyone to always use high yield saving accounts?

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RodeoBob t1_jd42c5g wrote

High yield savings accounts tend to have more restrictions than regular savings accounts.

They often require a higher minimum balance, and allow fewer transactions per month. Going below the minimum balance may trigger a monthly fee, a lower rate, or both.

Savings accounts of any kind are a good option for mostly liquid savings that can be fairly quickly accessed. If you have a large amount of cash that you won't need right away, there are better investment options.

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mkhrrs89 OP t1_jd488vx wrote

interesting. Idk if what I have is considered "large" right now, but what would those better investment options be?

The only other things I have looked into are ETFs as pretty stable options and REITs that can pay out bigger dividends

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pineapple_and_olive t1_jd44gsw wrote

Aha because you're giving up something else in return. In finance there is no free lunch ever.

So what's the catch? Most typically these higher yield savings/deposits will lock out the money for a term (3/6/12 months), or the account requires a minimum balance or deposit, or the better rates only apply to non-local currencies, etc etc it's all up to the bank.

[edit] Credit pertains to debt. Taking out loans is when your credit score matters.

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