Editor’s Letter Get a High-Yield Savings Account Now

Editor's Letter Get a High-Yield Savings Account Now

The Power of Substitutions: Lessons from Soccer for Maximizing Your Savings

I promise we’ll get to finance and savings accounts. But first, let’s talk soccer. If you’ve been following the United States’ run at the World Cup this year, you’ve probably heard some discussion about roster management. There were surprises in the team announcement, but the real waves came when U.S. women’s national team coach Vlatko Andonovski showed reluctance to make use of his depth on the bench.

During a high-pressure match against the Netherlands, the toughest team in the group stage, Andonovski made just one substitution throughout the 90 minutes. The result? A 1-1 draw. Instead of utilizing the incredible depth of the USWNT bench, he tired out the forward line, potentially missing out on game-changing opportunities. It’s not a good position to be in as they head into the next match against Sweden.

As I rant at anyone who’ll listen about this missed opportunity on the soccer field, I can’t help but draw parallels to how we make use (or fail to make use) of our own proverbial benches in our daily lives. Not having a high-yield savings account in a year with spectacular rates is like leaving a top player on the bench – a missed opportunity.

While the Fed keeps raising interest rates, savings are benefiting. Rates on savings accounts generally follow what the Fed is doing. So now, we’ve got high-yield savings, money market, and CD accounts with rates over 4% and, in some cases, over 5%. That means if you have any cash you’re saving sitting in a regular bank account, you’re leaving money on the table.

But what exactly are these high-yield savings accounts? They may sound fancy, but they are fantastically simple. In fact, I once showed a friend how to use a Marcus by Goldman Sachs account while sitting in the stands of a Gotham FC match. With just a few clicks on the app, you can transfer money in and out. There are no restrictions on moving that money around, unlike with a CD, for example.

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Andonovski said he didn’t use more subs during the Netherlands match “because sometimes a substitute comes in and it might take a minute or two to get into a rhythm.” Similarly, it may take a few minutes to set up a high-yield savings account, but is that minute or two of adjustment worth missing out on interest earnings over the lifetime of an account? Definitely not.

Plus, there are even more ways to utilize your roster when it comes to these accounts. Many savings accounts have bonuses that can boost your rate even higher. For example, Marcus currently has a referral program where both you and your friend get an additional 1% APY for three months if they open an account through your referral.

Since that Gotham FC match, my friend and I have set up our own high-yield savings accounts. Now, on the first day of every month, we text each other to celebrate what we call “free money day” when the interest hits our account. It’s a small victory, but a victory nonetheless.

Don’t leave free money on your bench. Just as Vlatko should use his bench for the upcoming match, you should use a high-yield savings account to maximize your savings potential.

Thanks,

Alexandra

What I learned this week:

• Anne Kates Smith from ANBLE’s Personal Finance Magazine on the state of the apparent new bull market
• Contributor Charles Sizemore broke down what inflation is
• Tax writer Katelyn Washington explained how to find back-to-school sales tax holidays
• Personal finance writer Donna LeValley looked at how to buy and sell bonds
• Walmart+ has some new travel perks

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