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pineapple_and_olive t1_jd44gsw wrote

Reply to comment by mkhrrs89 in ELI5: How do high yield savings accounts work? What is APR & APY, and how does compounding quarterly vs monthly vs yearly affect the amount earned? If you open one, how often are there payouts? by mkhrrs89

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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