What is a high-yield savings account and should you use one?

The video explores how saving money can impact achieving financial goals, focusing on high yield savings accounts. It compares traditional and high yield savings accounts, highlighting the higher interest rates of the latter. However, it also discusses the limitations of high yield accounts, such as withdrawal restrictions. The video advises using high yield accounts for long-term goals like building an emergency fund or saving for a major purchase, while keeping some funds in a traditional account for quick access. Consulting a financial advisor is recommended for personalized advice.

What is the main advantage of a high yield savings account compared to a traditional savings account?

• Lower fees

• Higher interest rate

• Better customer service

• More frequent withdrawals

What is a potential downside of using a high yield savings account?

• Higher interest rates

• Limited access to funds

• Unlimited withdrawals

• No interest earned

Why might a high yield savings account be a good choice for long-term goals?

• They provide higher interest rates

• They have no withdrawal limits

• They require no minimum balance

• They offer instant access to funds

What should you do to ensure quick access to cash while using a high yield savings account?

• Use a credit card for emergencies

• Maintain a separate traditional savings account

• Invest in stocks

• Keep all your money in the high yield account

Before withdrawing money from a high yield savings account, what is a recommended step?

• Ignore the bank's policies

• Speak with the bank's customer service

• Withdraw all funds at once

• Close the account