– Some online banks offer more than 2% APY on high-yield savings accounts.
– Stablecoin staking, also know as DeFi lending or yield farming, is essentially a modern day hybrid of a high-yield account.
What Is a High-Yield Savings Account
It doesn’t get any easier than profiting from a savings account. “Like taking candy from a baby,” as the saying goes. And by profit, we’re talking about making 10 times more than savings accounts at traditional banks like Wells Fargo or Bank of America. That’s some good candy!
High-yield savings accounts at credit unions and online banks, also known as digital banks or neobanks, are great investments because they can provide over 2% APY and are regulated by the U.S. government, so they’re safe and FDIC insured (up to $250,000 per account). Meanwhile, most traditional banks provide savings accounts with interest rates at around .03% APY.
Why Get High-Yield Savings Accounts?
High APY is why. APY stands for Annual Percentage Yield and is the amount of compounded interest an account earns annually.
If your cash is going to be sitting in a bank account, you certainly want to make sure it’s a high-yield savings account with a high APY because it will generate a lot more income than a low APY account. For example, if you invest $250,000 into a high-yield savings account with a 2% APY, you’d get $5,000 annually in interest. Whereas, at a traditional bank, the same $250,000 balance at a .03% APY would net you just $750 annually.
Banks with Best High-Yield Savings Accounts
Crypto Staking Versus High-Yield Accounts
Stablecoin staking, also know as DeFi lending or yield farming, is essentially a modern day hybrid of a high-yield account. When you buy and stake a stablecoin, like USD Coin (USDC) or Tether (USDT), you are buying tokens pegged to the U.S. Dollars and earning an APY from them.
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