After our first house sold, we had every intention of putting the profit from that sale towards our current mortgage. But then COVID-19 happened, and along with it came unprecedented economic insecurity.
My husband can work from home, but he works in sales, so it's likely that his income will take a dip until this unpredictable time passes. That's why, instead of dumping all that money into our mortgage as we originally planned, we have decided to keep it in the event that we need it to pay our bills.We've decided to invest some of the money we made on the sale of our house, and put the rest into our high-yield savings account to beef up our emergency fund.
So what is a high-yield savings account? For those of you unfamiliar with them, they're essentially the same as a typical savings account but with a higher interest rate.in response to COVID-19, but high-yield savings accounts still earn up to 20 times more interest than typical bank savings accounts. It's an easy way to earn money on your money in a safe and predictable way.
When we started looking, Citibank was offering the highest interest rate of the bunch. Although initially the no-brainer decision seemed to be to go with Citibank, after doing some more research I realized that you also had to open a checking account and keep a required minimum balance to get the top rate, which didn't interest me. as it had a higher rate than Capital One, and I deposited $80,000 into it.
It only takes a few minutes to open a high-yield savings account online and it's an easy way to earn money without taking on additional risk during this time.