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What is a High-Yield Savings Account and Do I Need One?

We have all heard of a checking and savings account, but you may not be familiar with LendingClub’s High-Yield Savings account and its benefits. Just like it sounds, a High-Yield Savings account helps you earn more than many other savings accounts. With the money you are looking to save, you can earn a higher rate of interest, adding up to 16x the national average.1

So why does this matter?

Well, the best part about a savings account is that it earns you more money without you even having to lift a finger. You’ll earn more money than you would normally if you had your funds sitting in a checking account. It’s a great way to save for your future, whether it’s for a vacation or an emergency fund. There are many accounts out there, but when you are doing your research, be sure to check out LendingClub’s High-Yield Savings account.

Why do interest rates vary from bank to bank? 

Many online banks are able to offer a high interest rate due to their operating costs being lower than your bank down the street. As of September 2022, the national average interest rate for a savings accounts is 0.17% APY1, with some banks even offering as low as 0.01% APY. On the other hand, a High-Yield Savings account with LendingClub offers a competitive interest rateon your entire balance.2

How do I apply for a High-Yield Savings account?

In order to start earning one of the best rates in the country, apply online and set your account up within minutes. There is a $100.00 requirement to open the account, and then a monthly maintenance fee-free savings experience awaits.

To learn more about our High-Yield Savings account, visit our website here. To read more about how a High-Yield Savings account will benefit you, read our blog post here.

1. National average source: FDIC as of October 5, 2022
2. High-Yield Savings has no monthly maintenance fee, no minimum balance requirement after $100.00 to open the account, and is FDIC-insured up to the maximum allowed.Annual Percentage Yield (APY) accurate as of 10/06/2022. Rate tiers are as follows: 2.85% APY applies to balances of $0.00-$9.99; 2.85% APY applies to the entire balance on balances of $10.00-$2,499.99; 2.85% APY applies to the entire balance on balances of $2,500.00-$24,999.99 and 2.85% APY applies to the entire balance on balances of $25,000.00 or more. Rates are variable and may change at any time after the account is opened without notice. Rates are determined in the sole discretion of the Bank. Fees may reduce earnings.

About the author

Eileen Flynn

As the Social Media and Public Relations Coordinator, Eileen has grown up with the online and mobile banking industry. Eileen writes for other generation Zers and recent college graduates who are balancing both saving and spending and explains how online and mobile banking is there to help.