Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
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Are you saving up for a big vacation, an emergency fund, or a down payment on a new car? High-yield savings accounts, which typically offer higher annual percentage yields (APYs) than standard savings accounts, can help you reach your savings goals faster. At O1ne Mortgage, we are here to guide you through the process. Call us at 213-732-3074 for any mortgage service needs.
You can find high-yield savings accounts at traditional banks, online-only banks, or credit unions. When comparing different financial institutions and accounts, consider the following features:
APY reflects the annual return on your savings, taking into account compound interest. High-yield savings accounts from online-only banks tend to offer the highest APYs.
Many high-yield savings accounts can be opened with no deposit; others require a deposit of $25 to $100 or higher to open the account.
Most high-yield savings accounts don’t charge fees, but some do. Because bank fees can eat into your interest earnings, check for the following fees and make sure the account’s features outweigh any potential costs:
Look for a bank that is insured by the Federal Deposit Insurance Corp. (FDIC) or a credit union that is insured by the National Credit Union Association (NCUA). FDIC- and NCUA-insured financial institutions guarantee your account for up to $250,000 per account owner and account type.
See if the bank or credit union’s online banking features suit your needs. For example, a mobile banking app gives you the flexibility to manage your account on the go. Some banking apps also include budgeting tools or the ability to monitor your credit score.
If you may need to quickly transfer funds from your savings account to a checking account, make sure the financial institution offers checking accounts. Otherwise, it could take one to five days to transfer money to a checking account at a different bank or credit union.
Once you’ve selected the high-yield savings account you want, check the bank or credit union’s website to see what documents are required to open an account. Whether you’re applying in person or online, you’ll typically need:
Even traditional brick-and-mortar banks usually allow you to fill out an application for a savings account online. You can also make an appointment to visit the bank in person and complete an application. Have the necessary documents ready before you fill out the application.
Banks don’t check your credit score or credit report when you apply for a savings account, so you don’t need a credit history to open a bank account. However, banks will review your report from ChexSystems, a bank reporting agency that collects information about your previous bank accounts. If your ChexSystems report reveals a history of nonsufficient funds charges, overdrafts, or unpaid bank fees, your application may be denied.
Depending on the bank or credit union, you may get an instant decision on your application and be able to use the account right away, or it may take a few days.
You can make an initial deposit using cash if you’re visiting a bank or credit union in person. You can also make the deposit by transferring money from an account at another financial institution. Have your account numbers and routing numbers ready; be sure there’s enough money in the account from which you’re making the transfer.
Once your high-yield savings account is open, you can:
A savings account doesn’t involve debt payments, so account activity isn’t reported to credit bureaus. But while it doesn’t directly affect your credit score, a savings account can indirectly benefit your credit by providing a financial cushion that helps ensure you can pay your debts. For example, mortgage lenders typically review your liquid assets, including checking and savings accounts, to see if you have enough savings for at least two months’ worth of mortgage payments.
Contributing to a high-yield savings account is one way to boost your financial health. Another is to keep an eye on your credit history and credit score. Consider signing up for free credit monitoring from Experian to get notified of key changes in your credit report that could signal fraud.
For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We are here to help you achieve your financial goals.
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