High-yield savings accounts

Why should I move cash if banks can change the rate they offer at any time? It can be frustrating to open a new account with an attractive rate, only to see another bank beat that rate the next day. But constantly chasing rates is time-consuming and ultimately unhelpful since you have to leave the money in the account to earn the ratepick a bank that pays generally competitive rates and stick with it for a while. Some banks also offer incentives for new accounts. Discover, for instance, is offering a bonus of $150 for new accounts with a minimum deposit of $15,000, and $200 with a minimum of $25,000, through March 15. If you want assurance that the rate won’t fall soon after you open an account, you could opt for a certificate of deposit, which pays a guaranteed rate for a fixed period, like one month, six months or a year. You’ll generally pay a penalty, however, if you withdraw funds before the full term.

Will I automatically get a bank’s newest high rates on my online savings account? Not necessarily. Some banks — like Marcus, Goldman Sachs’ online bank — may automatically increase your interest rate to the level offered to new accounts. But others, like Capital One, make customers take the step of opening a new account and transferring their funds into it. A Capital One spokesperson said opening a new account took only five minutes.

How can I compare yields at different rates? Online savings calculators, like the one offered by the federal government’s Investor.gov website, can show you what you’ll earn on your cash, at different rates.