High-yield savings accounts have been all over the news lately and may have you reconsidering where you put your money. But before you rush to open a new account, there are a few things to know. We’re detailing what these accounts do, what counts as “high-yield,” and what types of high-yield saving accounts you can find at the DEXSTA credit unions in Delaware.

What Is a “High-Yield” Savings Account?

A savings account is considered high-yield if it includes an annual percentage rate on your yearly balance. The higher that rate is, the more your savings will grow. Finding the highest APY is important because it can give you an idea of how much your saving will increase over time. But remember to read the fine print! Some of these accounts have associated fees, and you want to ensure they are federally insured. 

What Kinds of High-Yield Savings Accounts Do Credit Unions In Delaware Offer?

Consider how you use your current savings account and use that information to decide on a realistic high-yield alternative. What matters is finding one that fits your needs and goals. Below is a complete list of high-yield saving account types, but you won’t necessarily find all of these at every financial institution. 

Online Savings Accounts: Digital banks aren’t burdened with the costs of running           brick-and-mortar locations. These savings are reflected in their ability to offer higher APYs.

Money Market Accounts: These accounts invest in low-risk, short-term bonds and certificates of deposit. They also have higher interest rates than traditional alternatives. 

Tiered Savings Accounts: These accounts reward higher balances with higher interest rates that increase as your balance grows.

Share Certificates: These accounts have high-interest rates but require that your balance remain untouched for a certain period. Should you withdraw money before the specified term, then you will be charged a penalty.

Rewards Savings Accounts: These accounts reward you for reaching savings goals or maintaining a balance for a specific period.

It’s also necessary to note that banks can change their APYs at any time based on the rates set by the Federal Reserve. So it helps to either discuss how the recent interest rate hikes have affected their APYs or do a deep dive to see how their rates have changed in recent months.

Which of These Savings Accounts Does DEXSTA Offer?

DEXSTA offers a variety of savings accounts that are designed to benefit our members. 

The most basic (and most common) are our  Share Savings Accounts. Opening share savings makes you an official member of DEXSTA and eligible to apply for loans and a checking account. 

We also offer a savings account through Free Kasasa Saver®, an online savings account, and rewards saving account in one! The beauty of this option is that it links to Kasasa’s other checking accounts, like the Free Kasasa Cash Back® or Free Kasasa Cash®. So when you earn purchase rewards through your Kasasa Cash Back account, they are automatically transferred into your Kasasa savings. 

DEXSTA’s money market account APYs are dependent on your balance. Amounts range from $5,000.00 to $75,000.00 and can earn interest. But restrictions do apply as you’re only allowed three withdrawals per month. Withdrawals beyond that will incur penalty fees. So it’s smart to psychologically frame a money market account as something you don’t interact with except to make deposits. The main objective is to build wealth over time. Plus, you can also open a traditional savings account in addition to a money market account; that way, you can make withdrawals without compromising your future.

Why Should I Choose to Save With DEXSTA Over Other Credit Unions in Delaware?

We understand that you have many options when it comes to personal banking. That’s why we offer specific, focused account options that best serve our customers. One of the advantages of being a credit union like DEXSTA is that our APYs on high-yield savings accounts are less vulnerable to federal interest rate hikes. In addition, our small size and focused services make us more nimble in adjusting rates that work for our members.

Since we believe in total transparency, we provide detailed information, so our members know exactly what to expect from our services. Visit our interest rates page to understand each account option’s APY and fee schedule fully. You can also refer to our literature on rates and fee schedules as well as our Truth-In-Savings Disclosure.

Like any bank, there are fees and penalties associated with these accounts. But at DEXSTA, we prioritize honesty and financial literacy by supplying you with clear terms. Unlike other banks, we don’t inflate our fees unnecessarily. The associated charges you’ll find in these documents are directly correlated with the operating costs that keep us serving the community.

Grow Your Wealth With DEXSTA!

Researching where to keep your savings can be confusing. Let DEXSTA help you navigate all your options by speaking with our customer service team. We can find an account that fits your lifestyle and saving behaviors so that you can achieve your goals!