at a bank that offered 1.7% interest . It was a huge difference and a mistake I never wanted to make again.Back in April, when the Federal Reserve started slashing interest rates, I watched my APY drop from 1.7% to 1.5%, then below 1%.
Vazza usually recommends high yield-savings accounts for clients' emergency funds, because the rates are more competitive than typical bank savings accounts. Even though high-yield savings account interest rates are fluctuating quite a bit, Vazza suggested leaving my cash alone because these rates are still competitive compared to other options, like bonds or CDs, which are also dropping lower and lower. With so much unknown and an ongoing fear that one day I'll run out of cash, I always liked knowing that I could take money out of my high-yield savings account without any penalties.
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