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Blog post
Inflation has been a persistent concern for many in recent years. The rising cost of everyday essentials, from groceries like eggs and meat to dairy products, coupled with increasing credit card APRs and the daunting prospect of home buying loans, highlights how inflation can touch our lives in multiple ways.
In 2023, amidst times of high inflation, one of the best financial decisions I made was to open a high-yield savings account, and let me tell you why.
...And why are they such a game-changer for your financial goals?
Think of a high-yield savings account as a financial safeguard that not only protects your money from the effects of inflation, but also helps it grow at an accelerated pace compared to a regular savings account. The key difference lies in the interest rate offered – while a regular savings account typically provides minimal interest, high-yield savings accounts offer significantly higher rates. High-yield savings account rates have soared to as high as 5% this year.
Let's break it down with a simple example. Suppose you have $10,000 that you decide to deposit into a high-yield savings account offering a 5% interest rate. Over the course of a year, you'll have $10,500 and accumulated $500 in interest.
As you earn interest, it gets added to your initial deposit, creating a larger base for the subsequent interest calculation. Over time, this snowball effect can result in your savings growing exponentially.
In other words, you're essentially missing out on free money if you keep your funds in a regular savings account with lower interest rates. High-yield savings accounts are designed to make your money work harder for you, helping you combat inflation and achieve your financial goals faster.
The Tandem app offers couples the ability to create a high-yield savings accounts together. And no, you don't need to share a bank account to do this. Imagine having the ability to save in designated "buckets" for your shared goals and future. Whether it's a savings for your new house, an unforgettable trip to Greece, or the wedding of your dreams, Tandem makes it possible.
With Tandem, you and your partner can watch your savings grow collectively, making your financial journey not just practical but also exciting. The ability to save toward shared goals strengthens your financial bond and sets you on a path to a brighter future together.
