Should You Consider a High-Yield Savings Account? Here’s What You Need to Know

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By Baruch Mann (Silvermann)

As an entrepreneur, it is essential to have a solid financial plan in place to manage business cash flow and prepare for unexpected expenses. One option to consider as part of this plan is a high-yield savings account. A high-yield savings account offers a higher interest rate than a traditional savings account, allowing money to grow faster.

There are both positives and potential negatives associated with high-yield savings accounts that will impact whether an individual should consider one.

The High-Yield Savings Account Basics

As the name suggests, high-yield savings accounts offer a higher yield on account balance compared to standard savings accounts. While on the surface a high-yield savings account may appear the same as a traditional savings account, there are some differences. For example, there may be a restriction on the number of withdrawals per month or year. There may also be a higher minimum balance requirement.