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