It’s almost impossible to overstate the importance of having quick access to a substantial pool of cash. Whether for an emergency or to diligently work toward a big milestone, consistently putting money in a savings account pays off big time.
If it’s already going to sit there until you want to cash out, why not set it up in a way that makes you a profit? This is where the concept of a high-yield savings account comes into play. It offers a passive way to grow your funds at a substantially minimized risk of loss. But not all high-yield savings accounts are equal. Most will barely move the needle, while Public.com offers an industry-leading 5.1%.
High Yield, Wide Safety Net And No Fees
While annual percentage yield (APY) is the name of the game, in the aftermath of the Silicon Valley Bank collapse, coverage is equally important. With that in mind, Public.com has decided to push the envelope. Traditional savings accounts come with Federal Deposit Insurance Corp. (FDIC) insurance of $250,000, which gives you something to fall back on if the bank fails. Public.com has catapulted this safety net into a new stratosphere by partnering with 20 banks, amplifying the FDIC insurance coverage up to $5 million. Even if some future crash claims Public.com in its entirety, the government will make sure you have nothing to worry about.
It’s fair to assume that this level of protection comes at a price, but the opposite is the case. If you compare different high-yield savings accounts, you’ll quickly realize that many of them have flashy APYs stamped on them. But you’ll be getting much less as a myriad of fees lurk underneath and heavily cut into your profits. Public.com has a different structure. It has no hidden fees, no subscription requirements, no minimum balance stipulations and no caps on the amount you can deposit. Transferring and withdrawing money is unlimited and comes at no extra cost.
Over months and years, the interest on your savings compounds, meaning you earn interest on your original investment and on the interest it has already generated. This is why every fraction of the percentage of your APY matters, and Public.com’s 5.1% is something to consider.
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