John and I opened our first high yield savings account this past week! After some research, we went with Synchrony Bank. No fees (as long as your balance is over $50) and a 0.95% APY, this is definitely something I wanted to get on board with.
We deposited $20K to start, and if we never add to it, we’ll make about $200 per year. Not much, but quite frankly that’s MUCH better than the interest rate of a regular savings account (.01%).
I plan on tracking our progress and updating the blog to let you know how much we’re contributing. As of right now, we don’t plan on adding a set monthly amount. With my husband just starting his own business, we’re not quite sure what he’s going to be taking in per month and what we’re going to be able to save. The goal would be to contribute $500 per month minimum, but of course we’ll have to wait and see if that’s possible.
This is probably the easiest passive income stream to exist. While the returns aren’t great, there’s zero risk involved! I highly recommend moving your savings account or emergency fund into a high yield savings account (and no, I was not compensated to say that!!).
Do you have a high yield savings? Any tips? I’d love to know!!
Erin @ Journey to Saving says
atThat’s not bad! Especially with a $50 minimum. It seems like the online banks have the best interest rates. When we moved, we chose a local bank, but I’d like to branch out at some point to enjoy raking in a little cash!
sbrooks52111@yahoo.com says
atHi!! Yes, I would definitely recommend putting some money into a high yield online savings 🙂 I actually read an interesting article on how you should never leave large chunks of money in a regular bank. The money should always be in some sort of investment. I agree with that, but I also like knowing that my money is completely SAFE, which I why I went the high yield route!