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What is a High-Yield Savings Account and Do I Need One?

We have all heard of a checking and savings account, but you may not be familiar with LendingClub’s High-Yield Savings account and its benefits. Just like it sounds, a High-Yield Savings account helps you earn more than a regular savings account. With the money you are looking to save, you can earn a higher rate of interest, adding up to 10x the national average.1

So why does this matter?

Well, the best part about a savings account is that it earns you more money without you even having to lift a finger. You’ll earn more money than you would normally if you had your funds sitting in a checking account. It’s a great way to save for your future, whether it’s for a vacation or an emergency fund. There are many accounts out there, but when you are doing your research, be sure to check out LendingClub’s High-Yield Savings account for all its benefits, including an opportunity to earn 0.60% APY.2

Why do interest rates vary from bank to bank? 

Many online banks are able to offer a high interest rate due to their operating costs being lower than your bank down the street. The national average interest rate for a savings accounts is 0.06% APY, with some banks even offering as low as 0.01% APY. On the other hand, a High-Yield Savings account with LendingClub offers a whopping 0.60% APY2when your balance is at least $2,500. If you were to have $10,000 in a regular savings account, you would add an extra $6 to your balance every year. With LendingClub that $6 becomes $60, and although it might not seem like a crazy difference – who wouldn’t want some extra money?

How do I apply for a High-Yield Savings account?

In order to start earning one of the best rates in the country, apply online and set your account up within minutes. There is a $100 requirement to open the account, and then a monthly maintenance fee-free savings experience awaits.

To learn more about our High-Yield Savings account, visit our website here. To read more about how a High-Yield Savings account will benefit you, read our blog post here.

About the author

Eileen Flynn

As the Social Media and Public Relations Coordinator, Eileen has grown up with the online and mobile banking industry. Eileen writes for other generation Zers and recent college graduates who are balancing both saving and spending and explains how online and mobile banking is there to help.