What are the pros and cons of a high-yield savings account?

Fund the account, which you can usually do with an electronic funds transfer from an external checking or savings account. While the pros of high-yield savings accounts tend to outweigh the cons, you might find a banking option that works better for your goals. Some alternatives include: Checking accounts.

What is a high yield savings account?

Main points: High- yield savings accounts are just one available type of deposit account. High-yield savings accounts often have a high Annual Percentage Yield, (APY) and offer flexible access to funds. Fees may be charged for frequent withdrawals from high-yield savings accounts, and tools may be limited.

Is a high-yield savings account a good idea?

If you need to build your emergency fund or are working toward paying for a wedding, a dream vacation or a down payment, a HYSA makes perfect sense. But there are still drawbacks to consider. Below, CNBC Select discusses the pros and cons of high-yield savings accounts. What is a high-yield savings account? What is a high-yield savings account?