3 things to consider before switching to a new high-yield savings account as interest rates drop
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- High-yield savings account rates are dropping in reaction to the Federal Reserve decreasing its rate.
- Some banks are decreasing their rates more drastically than others, so you might be considering switching to a high-yield savings account with a different company.
- If you switch banks, the new bank could drop its rates too, so it may not be worth the effort of setting up a new account.
- However, if you're already unhappy with your banking institution, this could be the time to finally change savings accounts.
- See Business Insider's picks for the best high-yield savings accounts »
As of July 8, 2020, the best high-yield savings accounts pay 0.95% to 1.21% APY. If you're earning considerably less than this, then you may want to consider switching.
When you originally chose a high-yield savings account, you probably took factors like minimum balances and management fees into consideration. But more than likely, you chose the account with one of the highest — if not the highest — interest rate available.See the rest of the story at Business Insider
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