Must Do: High Yield Savings Account

Stop everything you're doing and open a high yield savings account. Now.

I opened a high-yield savings account almost 1 year ago today and it was something I should have done a long, long time ago. If you need a place to store liquid assets like an emergency fund, this is the place to keep it. Locking your money away in a traditional savings account or your checking account is no better than keeping it under your mattress.

It's not worth my time
Let's do some simple math and then you'll maybe reconsider. Bank of America currently offers 0.06% APR on their "Platinum Honors" savings account. Goldman Sachs, on the other hand, offers 2.25%. Let's say you have $10,000 in savings and contribute $100 per month. Here's the math:

• Bank of America (0.06% APR): $11,206.33 after 1 year
• Goldman Sachs (2.25% APR): $11,439.79 after 1 year

That's $233.46 for less than 30 minutes of your time. If you're making more than this as a pharmacist, let me know if you're hiring.

How do I get my money?
There are a couple of ways to get your money out of your account. Just keep in mind that you are limited to 6 withdrawals per month (Regulation D).

• Transfer to local checking account - Usually takes about 1-2 business days but it's free
• Wire transfer - Use this when you need your money now and can't wait. It will cost you $20 but that's nothing compared to how much you'll be earning in interest
• Money transfer services like Zelle or Venmo

What bank should I use?

I'll leave that choice up to you, but some of the highest rated accounts over at Nerdwallet include Alliant Credit Union, Ally, and Discover Bank.


These views are my opinion and do not reflect professional financial assistance.