What's the hype about High Yield Saving Accounts?

Good morning!
Thank you for reading Week 1 of “the Daily Frugal” newsletters! I would HIGHLY ENCOURAGE YOU to reply to this email with feedback (what did you like? how can we improve?)

DEFINITION
What’s a High Yield Savings Account?

• So you have your normal savings accounts right… You know, the savings account you opened as a teenager (possibly with the help of your parents), and they told you to deposit cash in there. You notice how you earn 1 cent every 3 months? That’s how you know it’s a traditional savings account.

• Then there’s the High Yield Savings Account - also called a high-interest savings account, it’s a type of savings account offered by banks and credit unions with a higher interest rate than traditional savings accounts.

• Traditional savings accounts can offer you interest of 0.35%; while my current High-Yield Savings Account can earn interest of 5.05% HUGE DIFFERENCE.

• This is a great place to put your emergency fund. And you can open a high-yield savings account through online banks such as CIT Bank (the one I use), and SoFi.

PRACTICAL ADVICE
Preparing for the SuperBowl…

• Just go hit up some friends and get invited to their party. Way cheaper than planning and paying for your own.

HELPFUL RESOURCES
How to Open a Roth IRA Step by Step

• I recently watched this video from my friend Steve. He shows you step by step how to open a Roth IRA as a newbie

OUR COMMUNITY
What are your questions? Or share a win!

• Reply to this email with any personal finance question you have, or share with me any wins in your life! (I’ll respond to your questions anonymously in future emails)