This Is the One Bank Account Everyone Should Have, According to Tori Dunlap

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield

KEY POINTS

  • Keeping all of your money in a checking account isn't the best idea -- because most checking accounts don't earn interest.
  • You can reach your savings goals sooner by earning interest with a high-yield savings account.

A high-yield savings account can help you reach your savings goals.

Many people use a checking account to store their money and pay everyday bills. While this is a smart idea, it's not the only bank account you should have. It's a good idea to keep your savings in a separate account, and the type of account you choose matters.

Saving for the future is essential. Whether saving up for a costly purchase or preparing for emergencies, saving up now, so you have the money you need later, can be beneficial.

Having extra money available when you need it can help you feel less stressed because you'll feel confident that you're prepared for the future. Even if you plan well, unexpected expenses can pop up at any time.

If you're saving up money, make sure you carefully consider which bank account to store your money in. You should separate your savings from your everyday spending money by keeping it in a savings account.

Make your money grow faster by earning interest

Many people, especially women, look to financial expert Tori Dunlap for money guidance. Through her podcast and on social media, Tori shares her favorite financial tips.

One financial product that she suggests everyone has is a high-yield savings account. By opening this type of bank account, you can earn interest on your contributions.

In episode 34 of her podcast, The Financial Feminist, Tori explains why opening a high-yield savings account is recommended: you'll earn interest!

She notes that the interest rates offered with these types of accounts are typically higher than a regular savings account at your local bank -- so you can maximize the interest you earn.

You'll earn compound interest if you allow the money to sit and grow in your account. That means you'll earn interest on the initial money you've saved and the interest you've already made, which ultimately means a higher savings account balance.

When your money just sits in a checking account, you miss out on the chance to earn interest.

How to get the best results from a high-yield savings account

How can you get the most out of a high-yield savings account? Tori recommends storing your short-term savings in this type of account. This isn't the place to store your money for long-term savings, like retirement.

Instead, it's an excellent place to set aside savings for unexpected emergencies, the vacation you will take next year, or a more costly purchase you plan to make in the coming months. If you want, you can open up multiple accounts for different savings goals.

You can benefit greatly by automating your savings contributions. When you do this, you'll be committing to regular contributions. Plus, an automated process ensures you don't forget to save. Many people put off saving because they're forgetful -- so don't let that be you.

If you're keeping all of your money in your checking account, including your savings -- now is the time to open up a separate savings account so you can earn interest. By doing this, you'll also be less likely to spend your savings on unnecessary purchases.

Not sure who to bank with or what account is best for you? Check out our list of best high-yield savings accounts to review our recommendations.

These savings accounts are FDIC insured and could earn you 11x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts could earn you 11x the national average savings account rate. Click here to uncover the best-in-class accounts that landed a spot on our short list of the best savings accounts for 2024.

Two of our top online savings account picks:

Rates as of Apr 22, 2024 Ratings Methodology
Advertisement
SoFi Checking and Savings Barclays Online Savings
Member FDIC. Member FDIC.
Rating image, 4.75 out of 5 stars.
4.75/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor

APY: up to 4.60%

APY: 4.35%

Min. to earn APY: $0

Min. to earn APY: $0

Our Research Expert

Related Articles

View All Articles Learn More Link Arrow