Experts: Should You Keep a High-Yield Savings Account When the Rate Drops?

“[I]ndividuals should always be in the mindset of trying to maximize returns-even on cash,” according to Ted Parchman, a chartered financial analyst and senior portfolio manager and shareholder at Truepoint Wealth Counsel.

“High-yield savings will typically always have a yield edge to checking and savings accounts at traditional banks,” he said.

Additionally, he said that separating the high-yield account from your normal checking account allows you to more easily switch HYSA providers if another has a higher yield without having to disrupt your recurring payments.

“Today, I personally prefer to use a low-cost money market fund at my custodian,” Parchman said. “This allows me to capture higher rates more quickly than banks when the Fed increases rates without having to shop around. This has worked out well for me as rates have risen and I have one less account to worry about/track.”

Read more from Ted Parchman in “Experts: Should You Keep a High-Yield Savings Account When the Rate Drops?” on Yahoo Finance.