If you have been thinking that the interest rate on your savings account does not cut it anymore, you might want to try putting your money in a high yield online savings account. Since inflation hovers around 4%, keeping your money in a savings account that pays 0.1% makes no sense.

To earn a higher interest on your money, you should put your money in a high yield online savings account. A high yield online savings account usually has an APY several times that of a traditional savings account.

The difference between a high yield online savings and a traditional savings is that the former usually does not have a brick and mortar place that you go to do your transactions.

Since all transactions are done online when you have a high yield online savings account, this saves the bank a lot of money and they pass that savings on to you by giving you higher interest rates.

To search for the best high yield online savings account, use a personal finance website. You can find several on the first page of Google. These personal finance sites give you a list of high yield online savings account that you can choose from.

If you want a high yield online savings account with the highest interest rate, then sort the savings accounts by their APY. This will show the high yield online savings accounts with the best APY. Be careful about fees that some banks many charge.

Before you begin your application process for a high yield online savings account, check and make sure the bank is FDIC insured. Without FDIC insurance, your deposits will be at risk. You could potentially lose all your money.

Once you have made sure that the high yield online savings account is FDIC insured, go to that banks website and sign up for the account. They will probably want to check your credit and verify some information. Then you will need to set up a funding account. This can be your current checking account or another savings account that you already have. Transfer the money into your high yield online savings account and you are set.