What Is Yield?
Example: "The high-yield savings account offers 4.5% - much better than the 0.5% from a regular account."
Why It Matters
Yield tells you how much money your money is earning. When banks advertise a "high-yield savings account," they mean the account pays a higher-than-average interest rate on your deposits. Yield applies beyond just savings accounts. Bonds, certificates of deposit (CDs), and dividend-paying stocks all have yields. When comparing financial products, yield gives you an apples-to-apples way to evaluate which one earns more on your money. Keep in mind that higher yields sometimes come with trade-offs like less liquidity or higher risk.
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