What is a High yield savings account ?

Traditionally, people have held a savings account at the same bank where they hold their current account, making transfers between the two easy and quick. But with the advent of internet-only banks, as well as traditional banks that have opened their doors to customers across the country using online account opening, the competition on savings accounts has skyrocketed, creating a new category of “high-yield savings accounts.”

Given the difference between high-yield savings account rates and the national average, the increase in earnings is significant. If you’re holding £5,000 in savings, for instance, and the national average is 0.10 percent APY, you would return just £5 over the course of a year. If you instead put that same £5,000 in an account earning 2 percent, you’d earn £100.

Therefore choosing the right savings account for some business’ can earn thousands !

There are however a few things to consider:

  • Interest rate
  • required deposit
  • Fees
  • Duration

for a look at the most competitive interest rates click here.