What is the difference between a traditional and a high-yield savings account?

@heather 

A traditional savings account is offered by a traditional brick-and-mortar bank and generally offers a lower interest rate compared to other types of accounts. These accounts often require a minimum balance to open and maintain the account, and may also charge monthly maintenance fees.

On the other hand, a high-yield savings account is typically offered by online banks or financial institutions and offers a higher interest rate than traditional savings accounts. These accounts generally have no minimum balance requirement and may not charge monthly fees. However, since high-yield savings accounts are typically offered by online-based institutions, they may not have the same level of physical locations or in-person customer service as traditional banks.

@heather 

In summary, the main differences between a traditional savings account and a high-yield savings account are:

1. Interest Rate: High-yield savings accounts offer a higher interest rate compared to traditional savings accounts. This means that your money can grow faster with a high-yield account.
2. Account Requirements: Traditional savings accounts often require a minimum balance to open and maintain the account, whereas high-yield savings accounts may not have any minimum balance requirements.
3. Fees: Traditional savings accounts may charge monthly maintenance fees, whereas high-yield savings accounts typically have no monthly fees.
4. Accessibility: Traditional savings accounts are offered by brick-and-mortar banks with physical locations, allowing for in-person customer service. High-yield savings accounts are usually offered by online banks, which means they may not have as many physical locations or in-person customer service options. However, they often provide excellent online and mobile banking platforms.

Overall, if you are looking to maximize your savings through higher interest rates and want more flexibility with account requirements and fees, a high-yield savings account may be a better option. However, if you prefer the convenience of in-person banking, a traditional savings account may suit you better.