Recession-Proofing Your Money: Avoiding fallout with high-yield accounts

Recession-Proofing Your Money: Avoiding fallout with high-yield accounts

June 17, 2020

Market uncertainty has everyone wondering how to protect their assets. Investing in a high-yield account helps your money grow faster than a traditional bank account. Choose from trusted FDIC-backed companies to recession-proof your money. With a higher APY and convenient online services, there’s no better time to act: Open your high-yield account now.


When you want to open a savings account you have plenty of options, but it can be hard to find the best savings account for you. Typically, you’ll want to find one that offers the best savings account interest rates with no or low fees. In addition to the best savings interest rates, there might be other conveniences you’ll want to take into consideration — like whether the institution has brick-and-mortar locations or if you can bank via an app.

There are several types of savings accounts available, including free savings accounts and money market accounts, but to find the best savings rates, you’ll typically want to opt for a high-yield savings account.

What Is a High-Yield Savings Account?

High-yield savings accounts are generally the highest-interest rate savings accounts compared to traditional accounts, which tend to offer lower savings account interest rates. Also known as high-interest savings accounts, many high-yield savings accounts are online savings accounts. In these cases, the bank or credit union saves on overhead costs by not having physical locations and transfers those savings onto its customers in the form of the highest savings account rates.

How To Find the Best High-Yield Savings Account

To find the best bank for a savings account, you should take several criteria into consideration, including the minimum deposit required to open an account, any monthly maintenance fees associated with the account, the minimum balance required to avoid fees, and the annual percentage yield.

When choosing the best high-interest savings account for you, look for not only the best savings account rates now but also what your online savings account rates will be over time. Sometimes banks or credit unions will offer a high introductory APY that decreases after the first year or after a few months. Consider how much savings account interest you will earn over time once the introductory APY drops to the standard interest rate.


You can open a checking account at a wide range of financial institutions, but keep in mind that some accounts offer better features and perks than others.

Types of Checking Accounts

The best checking account for you will depend on your needs. A “free” checking account means different things at different institutions, but it typically means that there are no maintenance fees. There might be ATM or other transaction fees, however. If you’re not overly concerned with fees, you should consider opening an interest-bearing checking account. These accounts allow you to earn cash on the money you deposit. Some online checking accounts are both free and interest-bearing, so you get the best of both worlds.

If you have had issues with check-writing or overdrawing your account before, you might not qualify for a free, interest-bearing or traditional checking account. You could still qualify for a second-chance checking account. These accounts typically have a monthly fee, but they allow you to rehab your check-writing history.

How To Find the Best Bank to Open a Checking Account

When choosing a checking account, some things to consider include the minimum deposit required, whether there is a monthly maintenance fee, the minimum balance required to avoid fees, the highest checking account interest rates available, and the cost of the insufficient funds fees.

In addition to the above criteria, you might want to open a checking account with an institution that offers the best checking account offers, the best checking account deals, the best checking account promotions or the best checking account bonus. Even if you already have a checking account, you might consider switching institutions to take advantage of a checking account sign-up bonus or new checking account offers you don’t currently have, such as rebates on outside bank ATM fees or free checkbooks.


Certificate of deposit accounts, also known as CDs, are low-risk investments that allow you to earn interest on your funds risk-free, as long as you keep your money in the account until it matures. CDs typically offer higher interest rates than savings accounts, and unlike savings accounts, the rate you receive when you open the account is guaranteed.

How To Find the Best Bank CDs

When choosing a CD account, pay attention to not only what the best CD rates are, but also the length of the term and the minimum deposit required. Note that certificate of deposit rates are typically higher the longer the term is, so the best 1-year CD rates will likely be higher than the best 6-month CD rates. In addition, the highest CD rates might require a high minimum deposit.

The best CD for you will depend on how long you are willing to keep your money in the account and how much money you have available to deposit in the account. If your goal is to accrue a certain amount of money in a fixed period of time, you can use any of the numerous online CD calculators to determine how much you need to deposit at what CD interest rate and for how long to achieve that goal.

What Type of CDs Have the Highest Rates?

If you’re looking for an especially high-interest CD, you might consider a specialized CD called a jumbo CD. Jumbo CD rates tend to be higher than those of a traditional CD, but you will need a much larger deposit to open one — typically around $100,000. Keep in mind that the FDIC ensures accounts up to $250,000, so if you deposit more than that into a jumbo CD, you are exposing yourself to more risk.

Even if you don’t have the funds to open a jumbo CD, you can still benefit from the current CD rates at the deposit size and term length that’s best for you.


When choosing a bank, there are several factors you should look for — including the products and services it offers, its fees and interest rates, and, if it’s a brick-and-mortar institution, whether there are physical branches near you. The best bank for you will also depend upon the type of account you wish to open. You can also open different accounts at different banks to take advantage of the best rates and offers for specific accounts.

Types of Banking Accounts

There are numerous bank accounts you may choose to open. In addition to savings accounts, checking accounts and CD accounts, you may want to open a high-yield money market account. Money market accounts are like traditional savings accounts, but they typically offer higher interest rates in exchange for a higher minimum opening deposit. To qualify for the best money market rates, you usually need to maintain a high balance in your account. Take the time to compare different institutions to find the best money market interest rates for the balance you are able to deposit.

Brick-and-Mortar vs. Online Banks

One thing you will need to decide before opening an account is whether you want to be able to bank at a physical branch or whether you prefer the ease of an online-only bank. Online bank interest rates tend to be higher than those offered by traditional banks; online banks with high interest rates save on overhead costs compared to brick-and-mortar banks, and they are able to pass these savings along to their customers. Before choosing an online bank, be sure to compare their offered interest rates to find the best online bank rates.

New Bank Account Offers

There are some banks that pay you to open an account in the form of a bank account opening bonus. There are usually requirements you will need to meet to qualify for a new bank account bonus such as depositing a certain amount into the account and keeping it there for an allotted amount of time.

Keep in mind that while bank bonus offers and new bank account promotions are nice, it usually pays more, in the long run, to go with the institution that has the best bank interest rates.

(Sources: CNN Business News and Go Banking Rates)