How To Find A Great Job Without A College Degree

Job Hunting Without a College Degree

Looking for a job without a college degree can seem like a daunting task. But, the good news is that there are plenty of opportunities available for individuals without a college degree. In this post, we’ll walk you through some tips on how to hunt for jobs by putting your strongest qualities forward.

Firstly, let’s talk about the traditional school of thought when it comes to the career space. The idea that you need to attend college to obtain a college degree, and then magically land a successful professional career, works for some people. But, it’s not the only way to go. In fact, many successful individuals, such as Steve Jobs, Bill Gates, Alicia Keys, and Ryan Seacrest, have found great success without a college degree.

That being said, the importance of a college degree can’t be downplayed. However, as the overall attitude about higher education continues to change largely because of student debt, there are several opportunities available without higher education beyond a high school diploma.

So, here are some key tips for job hunting without a college degree:

Tip #1: Write a great resume/LinkedIn profile by including both job and life experience

If you don’t have a college degree, you need to format your resume in such a way that it highlights your strongest attributes, including your work and life experience. For instance, instead of having a section for education, you could replace it with a section for special achievements, volunteer work, or the life skills you possess that are relevant to the job in question. Suppose you have extensive work experience; you can use a chronological format to outline how long you’ve been working and what positions you held. Learn how to avoid common resume mistakes with this blog post: 5 Worst Resume Mistakes (and How to Avoid Them).

Tip #2: Treat your cover letter like an elevator pitch that explains why you are the best candidate

Your cover letter is an excellent tool that you can use as an elevator pitch to explain why you are the best candidate and how you can offer the most value to your employers. Use your cover letter to introduce yourself and demonstrate your professional aptitude, strengths, and skills. Start by introducing yourself, then summarize what you do, and finally, explain what you want to achieve – but remember to write it through the lens of the employer. How do both of your goals align?

Tip #3: Lean into your networking strategy to try and grow your list of professional contacts

Networking is an excellent way to grow your professional list of contacts when you’re applying for a job and don’t have a college degree. Reach out to your professional contacts in a given company or industry, lt them know that you’re applying for the job, and see if they are willing to write a recommendation or inform the hiring manager about you. Leaning into your networking strategy can also help you get information about current job openings that might suit you. Plus, continually expanding your professional network will help you learn about new job opportunities that might not have been on your radar, either because they’re an industry you weren’t familiar with or it’s a job that’s not yet publicly posted. It’s all about being in the right place at the right time, talking to the right people.

Tip #4: Seek references and letters of recommendation on your behalf

When applying for a job, some employers may require you to submit a letter of recommendation. This could happen before, during, or after your interview. When an employer asks for a letter of recommendation, they are interested in hearing from individuals who can attest to your abilities, skills, and work habits. Seeking references and letters of recommendation can help increase your chances of landing a job.

In conclusion, job hunting without a college degree may seem like an uphill task, but with the right strategy, you can get your dream job. Don’t be afraid to be bold in your search for your next great role, even if you don’t have a degree. Keep these tips in mind, and good luck in your job hunt!

If you want to learn more about job searching today, check out CashFurther! We’ve got a wealth of resources that can help you land your dream job.

Advice for Long-term Investing During a Recession

Advice for Long-term Investing During a Recession

If you’ve just reached the point where you’re ready to start investing but find yourself dealing with an economic downturn, don’t be discouraged. Investing during a recession can be a challenging prospect, but for those with the right know-how and approach, it can also present a wealth of opportunities.

In this article, we will explore some of the key advice and strategies to keep in mind when investing during an economic downturn.

Focus On Investing For The Long Term

An important consideration is to take a cautious approach to investing during a recession. While it can be tempting to try and make quick profits by buying low and selling high, this approach can also be risky. Instead, beginner investors should focus on long-term investing strategies, looking for opportunities to buy high-quality stocks or other assets at a discounted price.

Consider The Unique Opportunity At Hand

One of the biggest advantages of investing during a recession is that it can be a good time to buy stocks. With many companies experiencing significant drops in their stock prices, there are often bargains to be had for savvy investors who are willing to take a long-term approach. However, it’s important to remember that stocks are riskier than bonds or other investments, so it’s important to do your research and choose companies or mutual funds with solid fundamentals and a strong track record of performance.

Don’t Obsess Over Your Portfolio’s Progress

Another key piece of advice for investing during a recession is to resist the urge to check your investments too often. While it can be tempting to obsessively monitor your portfolio in the hopes of spotting opportunities to buy or sell, this approach can often be counterproductive. Instead, focus on your long-term investment strategy and trust that your portfolio will rebound over time.

Make Sure You’re Using A Diverse Investment Strategy

It’s also important to regularly review your portfolio diversification and make changes as needed. Diversification is important because it helps reduce risk by spreading your assets across different types of investments. However, keep in mind that diversification doesn’t guarantee that all of your investments will perform well at the same time. 

Ultimately, investing during a recession requires a long-term perspective and a willingness to be patient. While it can be tempting to try and time the market or make quick profits, the most successful investors are those who focus on the fundamentals and invest for the long-term. If you can keep these principles in mind and maintain a disciplined approach, you may be able to take advantage of the opportunities presented by an economic downturn and come out ahead in the long run.

Of course, it’s important to remember that investing always involves some degree of risk, and there are no guarantees of success. However, by following the advice and strategies outlined in this article, you can position yourself to make informed decisions and weather the ups and downs of the market with confidence, even if you’re just getting started.

The Basics of Successful Professional Networking

woman on laptop networking

Professional networking is crucial if you’re looking to advance your career or improve your financial situation. It can help you connect with others in your industry, learn from their experiences, and even find job opportunities. But how do you go about it? Here are some basics to help you successfully navigate professional networking.

Ensure Your LinkedIn Profile Is Always Up-To-Date

LinkedIn has proven to be an essential resource for job seekers and employers alike. With over 700 million members, LinkedIn is the largest professional networking platform, and having an updated and active profile can make all the difference.

Your LinkedIn profile is essentially your online resume and should reflect your professional identity. It’s important to keep it up-to-date, highlighting your latest accomplishments and experience. Ensure that your photo is professional and current, your contact information is accurate, and your job history is filled in. Remember, this is the first impression you’re giving to potential connections, so make it count!

Attend Networking Events Virtually And In-Person

Networking events take various forms, from career fairs to trade shows to seminars and webinars. Whatever the event, make sure it’s relevant to your career or industry. Attending such events can help you stay up-to-date with the latest trends in your field, learn from experts, and connect with like-minded individuals.

But attending networking events isn’t enough. You need to prepare yourself to make the most out of them. Start by researching the event and the speakers. Find out who you’d like to connect with and why. Prepare a 30-second pitch about yourself, highlighting your skills and what you’re looking for. Don’t forget to brush up on your conversational skills and actively listen to others. Remember, networking isn’t just about what you can get out of it, but what you can offer.

Reach Out For Advice And Mentorship

Attending networking events alone isn’t enough to build a successful network. To make the most of your connections, you need to seek advice and mentorship from experienced professionals in your field. Many companies offer mentorship programs that can be incredibly helpful in navigating the ups and downs of your career.

Reaching out for mentorship takes some courage, but it can make all the difference in your career. Identify individuals you admire and respect, and ask them for their advice. Start by scheduling a coffee chat or a phone call, and prepare some questions beforehand. Be respectful of their time and follow up with a thank-you note. Remember, mentorship is a two-way street, and you can offer value to your mentors as well. Share insights from your own experience, and keep them updated on your progress.

Make Introductions At Every Opportunity

Networking isn’t just about what you can get out of it. It’s also about what you can offer. If you come across an opportunity to make an introduction on behalf of someone else, seize it. Introducing two people who may benefit from each other’s expertise can be an excellent way to build goodwill in your network. It’s also a chance to showcase your interpersonal skills and make a positive impression.

In Conclusion

Professional networking is essential for career growth and financial success. By building a network of like-minded individuals and industry experts, you can gain valuable insights, knowledge, and opportunities. Remember that networking is not a one-time event, but a continuous process that requires effort and consistency.

Make sure your LinkedIn profile is up-to-date, attend networking events related to your career or industry, reach out for mentorship, and make introductions if an opportunity arises. By doing so, you will expand your professional circle and open doors for better job opportunities and financial rewards.

If you feel intimidated by networking, consider joining CashFurther, a platform that connects like-minded individuals and offers guidance on effective networking strategies. Remember, successful networking requires patience, consistency, and a willingness to learn and share knowledge.

By putting in the effort to build and maintain professional relationships, you can achieve your career goals and improve your financial situation. So, start networking today and see where it takes you!

Tips for Negotiating Your Next Job Offer

Negotiating job offer

Congratulations on securing your next job or making it to the final round of interviews at a company you like! However, if you’re facing a job offer with a lower salary or fewer benefits than you feel you deserve, don’t be afraid to negotiate. Negotiating your job offer can actually show the company that you know your worth and are confident in advocating for yourself.

Although negotiating can be intimidating, it’s an essential skill if you want to improve your finances. To prepare for negotiating your next job offer, here are some tips to keep in mind:

Know the Local Market for Your Role

One of the essential things to do before negotiating your next job offer is to research the typical pay range for your position in your location. You can use websites like the Bureau of Labor Statistics to get an idea of the pay range for your job title.

You can also check what similar companies pay their employees in this position. By knowing the local market, you can make an informed decision and avoid undervaluing yourself.

Be Prepared with Specifics in Mind

When negotiating your job offer, you should have a clear idea of your experience, job requirements, educational background, and past metrics. Highlight any areas where you exceed the minimum requirements and how they make you a strong fit for the position. For instance, you can explain your years of industry experience to the hiring manager, especially if you have exceeded the minimum requirements.

You can also list your relevant educational background. Listing past metrics, achievements, and awards from the position if you have been recently employed in a different company can also be helpful.

Consider Negotiating Benefits Besides Salary

While a higher salary is often the most sought-after benefit, you can also consider negotiating other benefits that are important to you. These can include things like remote work, travel allowances, medical allowances, pension plans, and vacation time. Depending on your priorities and needs, you may find that some of these benefits are more valuable to you than a higher salary.

Remain Calm and Confident

Negotiating can be an uncomfortable and challenging experience. However, it’s essential to remain calm and confident throughout the process. If the person you’re negotiating with reacts negatively, don’t take it personally.

Instead, be prepared to ask for alternatives if they can’t offer what you asked for. Remember that you’re negotiating for your finances and future, and the stakes are high.

Practice Early and Get Feedback

Learning to negotiate is a skill that takes practice. Start practicing your negotiation skills early, so you’re prepared when the time comes. You can also practice your talking points with a trusted friend who can give you feedback and help you improve your negotiation skills. An ideal friend is someone in the corporate world or the same job position.

In summary, negotiating your job offer is an important step in advocating for yourself and improving your finances. Don’t be afraid to ask for what you’re worth and consider negotiating benefits besides salary. With preparation, confidence, and practice, you can successfully negotiate your next job offer.

Learning to negotiate strengthens your earning ability with each new position. For more information, join CashFurther to talk with others about their negotiation strategy.

Top 5 Mistakes Made by Beginner Investors

As a beginner investor, it’s easy to get swept up in the excitement of investing in stocks, bonds, and other financial instruments. However, there are common mistakes that many new investors make that can hinder their success. Here are six common pitfalls to watch out for:

Neglecting Your Financial Foundation Before Investing

It’s important to make sure your finances are in good shape before investing. This means having an emergency savings account, paying off high-interest debt, and setting a budget. Without a solid financial footing, you may be more vulnerable to market downturns and economic challenges. In addition, it’s important to have a clear investment plan with specific goals and a timeline for achieving them.

Investing in Individual Stocks Without Proper Research and Knowledge

Many new investors are tempted to invest in individual stocks, especially those with a flashy name or promising potential. However, investing in individual stocks can be risky, especially if you don’t have the knowledge or experience to evaluate the company and current market properly. It’s better to invest in a diversified portfolio of stocks or seek advice from a financial professional. A diversified portfolio can reduce your risk and provide greater potential for long-term returns.

Making Investment Decisions Based On Emotions Rather Than Facts

Emotional investing can lead to impulsive and irrational actions. For example, if you’re feeling fearful after watching the news, you may sell off your stocks in a panic, even if market conditions and company fundamentals suggest that it’s not the right time to sell. To prevent emotional investing (or divesting), focus on the facts and carefully assess market conditions and company fundamentals. It’s also helpful to have a set of investment principles that guide decision-making, such as diversifying your portfolio and avoiding investments you don’t fully understand.

Leaving Money In An Account Without Actually Investing It

One common mistake that new investors make is putting money into an account but not investing it, like a retirement account. Just because the funds are in your account doesn’t mean they’ve been allocated to stock purchases. Make sure your funds are actually being invested, not just saved! Leaving money in a savings account or other low-risk, low-return investment can be another component of your long-term financial goals, but investments with higher returns have the potential to outpace inflation and maintain or even increase the purchasing power of your money.

Not Utilizing Available Resources And Tools To Make Informed Decisions

There are many resources and tools available to help beginner investors make informed decisions. These include financial news and analysis, online research tools, and educational materials. By using these resources, you can make informed decisions about where to invest your money and how to diversify your portfolio. Many financial professionals make great content available for free through newsletters, podcasts, and social media platforms. Take advantage of professional advice at no cost – just be careful when applying it to your unique situation.

Paying Excessive Fees Or Commissions Without Realizing The Impact On Returns

It’s important to know the costs and commissions associated with your investments. These can include trading fees, management fees, and other charges that eat away at your returns. Carefully review the fees and commissions associated with your investments and choose low-cost options whenever possible. For example, you can choose low-cost index funds or exchange-traded funds (ETFs) instead of actively managed mutual funds, which often have higher fees.

In conclusion, avoiding these common mistakes can help beginner investors achieve greater success in the stock market. By focusing on your financial foundation, diversifying your portfolio, making rational decisions, investing your money wisely, utilizing all of your resources and tools, and minimizing fees and commissions, you can improve your chances of reaching your financial goals.

Join the CashFurther community and take control of your financial future. With a wealth of resources and support from like-minded individuals, you’ll learn how to improve your credit score, budget wisely, and achieve financial stability.

When and How to Review Your Budget

couple reviewing a budget

Budgeting is an important financial tool that allows you to track your income and expenses and make sure you are spending your money in a way that aligns with your financial goals. It’s important to review your budget regularly, at least once per month, in order to make sure it is still accurate and effective. Here are some steps you can follow to review your budget and make any necessary adjustments:

Compare Your Actual Spending To Your Planned Spending

After creating your budget, track your monthly spending in a spreadsheet or an app. This will allow you to see if you overspent, underspent, or stayed on budget for the month. If you overspent in any categories, you may need to cut back on those expenses in the future. If you underspent, you can consider allocating that extra money to other areas or saving it.

Assess New Expenses And Sources Of Income

Your income and expenses may change from month to month, so it’s important to consider these changes when creating your budget for the following month. Any changes in your lifestyle, such as moving to a new home, can impact your income or expenses and should be reflected in your budget.

Examine Your Financial Objectives

In addition to changes in income and expenses, your financial goals may also change over time. For example, if you recently paid off your debts, you may have more money available to allocate to other spending categories. Make sure to include your financial objectives in your budget.

Adapt Your Budget To Your Needs

Once you have a baseline for your monthly expenses, income, and financial objectives, you can make any necessary changes to your budget. This may involve reducing wasteful spending and shifting funds to different categories. If your financial situation has changed significantly, you may need to adjust the allocations for each spending category.

Find And Fix Budget Leaks

Analyzing your budget can also help you identify any “budget leaks” – hidden issues with your spending. To fix these leaks, you may need to cut back on your expenses further. For example, if you have been relying too heavily on credit cards or dipping into your savings account, you may need to switch to a cash-only budget, leave your credit card at home, or put your savings in a certificate of deposit (CD) to make it more difficult to access the money.

Review Your Budget Regularly

In order to increase your savings, manage your spending habits, and work towards your long-term goals, it’s important to review your budget on a regular basis. Some key times to review your budget include when your income changes, when your priorities change, or when you have made mistakes in your budgeting.

When reviewing your budget, it can be helpful to ask yourself some questions: What went well? What went wrong? And what can be done better? Reflect on the budget-friendly actions you’ve taken and consider any mistakes you may have made in the previous month. Think about what steps you can take to avoid making the same mistakes in the future.

Improving your budget is a process that takes time and effort, but it can help you improve your financial future. By tracking your spending, assessing your income and expenses, and making adjustments as needed, you can take control of your finances and work towards your financial goals. With the right tools and strategies, you can create a budget that works for you and helps you achieve your financial goals.

Join the CashFurther Community

Don’t be afraid to seek out additional resources or seek help if you need it. Join the CashFurther community to learn more from others who are working to improve their financial position. We’re stronger together!

Cutting Costs: What Not to Buy on a Budget

cutting costs

Inflation and the high cost of living can make it difficult for many people to make ends meet. In fact, research shows that about three out of five Americans live paycheck to paycheck, and many of these individuals have lost financial stability. This is especially true for those in the lower-income bracket, who are often looking for ways to reduce expenses and hold onto more money.

Here are some ways to help you save money and build your nest egg:

Reevaluate Your Subscriptions

Do you really need all of the subscriptions you currently have, especially if you’re on a tight budget? For example, streaming services like Spotify, Netflix, and HBO max can cost at least $340 per year. Consider canceling subscriptions that you don’t use or need, and only keep those that you use and can comfortably afford. Additionally, unsubscribe from email newsletters or regular advertisements that may tempt you to make impulsive purchases. You can always resubscribe later if you find that you miss or need the service.

Review Your Regular Purchases

Expenses are inevitable, especially if you have a family to support. However, it’s important to stay within budget and only buy what you need. To do this, create a meal plan for the week and make a shopping list before heading to the store. This will help you avoid impulse purchases and minimize waste. Some apps can even help you create and organize your shopping list by grouping items into categories for easy shopping. Apply this same logic to other repeat purchasing throughout your budget.

Cut Home Energy Costs

There are several ways you can lower your utility bills. For example, sealing windows and caulking doors can keep out heat and cold, reducing your cooling and heating costs. You can also switch to energy-efficient light bulbs, which use less energy and last longer, and invest in Energy Star appliances that use less energy as well. Additionally, try to utilize natural light during the day and only turn on lights at night to minimize energy use.

Reevaluate Needs Vs. Wants

It’s important to differentiate between needs and wants. Only buy what you need and can afford at the moment, and consider cheaper alternatives for other items. For example, if you’re struggling to pay your bills, it might not be the best time to buy a new car. And if your closet is already full, you don’t need to buy new, expensive clothes just to keep up with trends. If you can’t afford an item, it’s okay to wait until you have the financial means to purchase it.

Join the CashFurther Community

To learn more ways to improve your personal finances, consider joining the CashFurther community and interacting with other like-minded individuals. This can be a great way to get support and advice from others who are also looking to cut costs and save money.

Additionally, you can find additional tips and resources for managing your finances and building your nest egg. Don’t let the high cost of living hold you back – with some careful planning and budgeting, you can take control of your finances and secure your financial future.

How to Give a Great Job Interview


Congratulations on landing a job interview! Whether you’re an experienced interviewee or this is your very first time, it’s natural to feel some nerves. But the more you prepare, the more confident you’ll feel during the interview process. Here are some tips to help you give a great job interview and set yourself up for success.

Do Your Research

Before your interview, take the time to familiarize yourself with the company’s history, vision, current projects, and workplace culture. This will help you understand if you’re a good fit for the company and why you’re attracted to the position. Scour the company’s website and social media to find out as much as you can about the company. This will show your interviewer that you’re prepared and have a genuine interest in the position.

Plan Ahead

The morning of your interview is not the time to discover that you don’t know where the job site is or that your perfect outfit is at the bottom of your laundry hamper. Plan ahead to ensure that you arrive on time and dressed for success. Fully map out your journey to the interview location, including the commute time and any potential delays. If the location is unfamiliar to you, consider taking a trip there a few days before the interview to familiarize yourself with the area. Also, iron and lay out your interview outfit the night before so that everything is ready to go when you need to leave for your interview.

Practice, Practice, Practice

You may have prepared answers to common interview questions, but if it’s been a while since you’ve been through the interview process, you may feel overwhelmed and forget your answers. To avoid this, take some time to practice answering questions you expect to be asked. You can even ask a friend to conduct a mock interview with you to help you practice delivering your answers to an actual person.

Follow Up

After the interview, it’s important to follow up with a thank you note within 24 hours. This shows your genuine interest in the position and can help set you apart from the competition. Send an email to each person who was present at the interview thanking them for their time and reiterating your interest in the position.

By following these tips and being prepared for your interview, you’ll be well on your way to landing your dream job and achieving financial security.

If you want to learn more about improving your personal finances, consider joining the CashFurther community to interact with other like-minded individuals.

Job Hunting With A Gap In Your Resume

Searching for a new job can be stressful even in the best circumstances, but if you have an employment gap on your resume you may be worried that this will put you at a disadvantage. While resume gaps are not uncommon, people believe that there is a stigma associated with them that will make it harder for them to find a job in the future. 

However, a gap on your resume does not have to spell disaster as long as you take the right steps to highlight your experience positively. To help give you the best chance of landing your dream job, here are a few tips for job hunting with a gap in your resume. 

Take Time to Polish Your Resume

If you are searching for a new job but you have gaps in your resume, you should take some time to polish your resume and make sure that it works in your favor. If you have multiple gaps in your resume, the typical chronological resume format may not work well for you. Instead, consider adopting a hybrid resume format where you start your resume by listing a summary of your qualifications and key competencies that highlights your experience for the position you are applying for. You can then follow this will a list of your work experience. 

If you went through a period where you were job hopping, it may be to your advantage to delete certain jobs from your resume. As a general rule, it is okay to omit positions from your resume that lasted less than three months, as this will help streamline your resume. In fact, it is not uncommon for people to only include the most recent and relevant job experiences so that their resume does not become unnecessarily long. Having a polished resume that highlights your experience can help you stand out to recruiters even if you have gaps in your employment history. 

Prepare to Explain Your Resume Gaps

Of course, if it is obvious to recruiters that there are significant gaps in your resume, they may bring it up in an interview. You should be prepared to answer these questions as honestly as possible. You don’t want it to look like you are hiding anything, as this could do more damage in the long run. The fact is that employers are more understanding than ever about resume gaps, particularly since many people were laid off due to the COVID-19 pandemic. You can also frame gaps in your resume in a positive light by highlighting things you did during that time such as taking care of a loved one, educating your kids, or taking training courses to further your career.   

Continue to Build Skills Between Jobs  

If you are currently between jobs, the best way to deal with your current gap in employment is to do things to fill the gap in your resume. While you can’t do anything about past gaps in your resume, you can use the time you have now to gain experience that you can highlight on your resume. For instance, volunteering, freelancing, or earning a certificate online are all things that you can do to show that you were productive between jobs and continued to take steps to further your career. Use this time to your advantage.

Try to Maintain a Positive Outlook

If you are looking for a new job but you have gaps in your resume, the most important thing that you should do is try to remain positive. The fact is that most resume gaps aren’t deal breakers for employers, and being in the right mindset can help you frame gaps in a positive light when you start interviewing for jobs. Additionally, if you are currently unemployed, you can use the time you have between jobs to gain new skills and experience that will actually help you stand out to employers.

Learn more about steps that you should take when job hunting with gaps in your resume by joining the CashFurther community. There, you can chat with like-minded people to learn about steps that you can take to improve your personal finances.

Standard Vs. High-Yield Savings Accounts

Standard Vs High Yield Savings

Ready to Stretch Your Savings and Reach Your Goals Faster?

Read on for your complete guide to standard vs. high-yield savings accounts. 

Let your money generate even more money through a standard savings account or a high-yield savings account. Whether you want a nice nest egg, plan to remodel your home, or make a large purchase, reach your goals faster and maximize your funds. 

But how do you know which savings account is right for you?

Standard Savings Accounts

This is the type of account you typically think of when a savings account comes to mind. Every bank offers standard savings accounts, and most people normally open one in conjunction with a checking account.

Here are the pros and cons of a traditional savings account. 

Pros of Savings Accounts

  • Minimal funds required – The amount needed to open a savings account is typically very low, with some banks offering a $25 minimum initial deposit. 
  • No credit checks – Credit checks are not required to open a savings account. 
  • Easy withdrawal – You have 24/7 access to your money and can make withdrawals and transfers anytime. 
  • Minimal fees – Most savings accounts have no monthly maintenance threshold or a relatively low balance (or in some cases, number of deposits) you are required to maintain to avoid fees.
  • Insured by the FDIC – The FDIC insures up to $250,000 in deposits.

Cons of Savings Accounts

  • Low-interest rates – Interest for standard savings accounts is low. For example, as of May 2022, the national savings rate is only 0.07% annual percentage yield (APY).
  • Slower return – Due to low-interest rates, your rate of return will be slower than a high-yield savings account.
  • Limited withdrawals – You can only withdraw a maximum of 6 times per month, as mandated by the federal government. This is a key difference between checking and savings accounts.

High-Yield Savings Accounts

Just as they sound, high-yield savings accounts are designed to give you a faster return on your money.

This type of savings account is most commonly offered by online banks. You may find some traditional banks that offer a high-yield savings account as a separate product in the same way that banks issue credit cards, but they are not as common. 

Pros of High-Yield Savings Accounts

  • Higher interest rates – This type of savings account offers above-average interest rates, which means a faster return on your money. 
  • Low risk – There is no risk of losing funds as you might experience with stocks or other investments. 
  • Minimal fees – Due to lower overhead, most online banks either charge very low fees or do not have monthly fees at all.
  • Easy access – Withdraw money at any time. Just be aware of the 6-time-per-month withdrawal maximum. 

Cons of High-Yield Savings Accounts

  • Interest rates fluctuate – Interest rates can change at any time, depending on the economy. 
  • Not for long-term – Although great for the short to mid-term, there are better alternative options for long-term savings like retirement funds.
  • Withdrawal limits – Per the federal mandate, you can only make 6 withdrawals per month. 
  • Larger initial deposit – Most high-yield savings accounts require a larger minimum deposit to open an account.
  • Credit check – A soft pull of credit is typically done before opening an account. This should not affect your credit score but might be an issue if your credit score is already very low.

How to Choose Which Account is Right for You 

The bottom line is that standard and high-yield savings accounts operate very similarly. Both are insured by the FDIC, allow for a maximum of 6 withdrawals per month, have minimal fees, and are ideal for short to mid-term savings. 

The main differences are that higher-yield savings accounts have higher interest rates (which is a good thing when it comes to investments), allow for faster returns, require a larger initial deposit, and are mainly offered by online-only banking institutions.

On the other hand, standard savings accounts require a small initial deposit, are provided at both in-person and online banks, and have a lower interest rate with virtually no risk. 

Which type of savings account you choose will depend on your needs.

A high-yield savings account is the way to go if you have a large deposit available and want to reach your goals faster.

However, a standard savings account is a great option if you have a small initial deposit and are not in a hurry to reach your goals. 

Join the CashFurther Community

To keep learning more ways to improve your finances and interact with other like-minded individuals, join the CashFurther community. We are here to help you put more money in your pocket and reach your financial goals faster!