2007-02-01 12:15:10 · 6 answers · asked by nofreeride20042003 1 in Business & Finance ➔ Personal Finance
An account which has a rate of interest that is above the standard set rate of interest for that type of account at your bank.
You may have to keep the money in for a certain amount of time or have a set amount on deposit first to earn it, but unlike with standard cds and other types of things which can earn you greater interest, you can get that money in the high yield account out quicker if needed---you just won't earn the high rate of interest if you do that.
You are generally just keeping pace with inflation and not "losing" money with such high yield savings accounts, which you basically do by keeping your money in an account with no interest (safest, but no interest earned, no restrictions on getting your money) versus putting it in a high yield account (still safe but account may restrictions on when and how much money you can take out) versus investing it for the possibility of greater returns later (less safe, but POSSIBLE greater returns/earnings on your money).
You can usually shop around for such accounts and for the best deal---but it might mean moving your money from one bank to another to get the best deal.
See here at Money Magazine's online explanation:
http://money.cnn.com/2006/03/20/pf/savings_moneymag_0604/index.htm
2007-02-01 12:38:53 · answer #1 · answered by bookratt 3 · 0⤊ 0⤋
HSBC Bank USA, NA is now offering a promotion on the Online Savings account .. that is offering 6% until April 30.
go to www.us.hsbc.com to get more info.
2007-02-01 13:04:38 · answer #2 · answered by Anonymous · 0⤊ 0⤋
High yield does not mean high risk. All deposits at banks are federally insured. It would help to know what country you are in :) In Canada/US, ING is a pretty good choice.
2016-05-24 03:34:46 · answer #3 · answered by ? 4 · 0⤊ 0⤋
the simple answer-- an account that offers a higher interest rate to you than other savings accounts, but requires more of your money to be kept in there.
2007-02-01 15:43:09 · answer #4 · answered by Rank Roo 4 · 0⤊ 0⤋
A saving account that pays higher interest.
(Don't forget to check out their fees: withdrawal, ATM, automatic debit, direct debit, cheque, etc.)
The 2 highest rates in Canada right now are Achieva and Outlook. (4.10%)
For best all around deal go for PC financial. (4%)
2007-02-03 15:38:19 · answer #5 · answered by keanu2905 1 · 0⤊ 0⤋
An IRA is a good example. It compounds your interest daily at a high percentage. Varies from bank to bank.
2007-02-01 12:25:33 · answer #6 · answered by SloBoMo 5 · 0⤊ 0⤋