A penny saved is a penny earned. This adage suggests the benefits of thriftiness and putting away your money for the future. But it’s also an apt description of the returns you’re likely to see from a traditional savings account at a brick-and-mortar bank. With their low interest rates, that’s how you’ll be able to count your earnings—in pennies.

With so many investment options, it makes almost no sense to sock away your money in a regular old savings account, where it draws little interest. In fact, the one of the only reasons people tend to stick with a low-yield account is due to an extremely stubborn or lazy nature.

You’ll be much better off opening a high-yield savings account.

These accounts can be beneficial for several reasons. They are a great place to hold money that you’re worried you might need soon or know you will need soon. Many people like to have an emergency fund with a few months worth of salary saved in case they lose their job or an unexpected expense arises. No reason to keep that money in a checking account that pays well under 1% in interest, though. And there are usually no restrictions on when you can access your funds, unlike CDs and IRAs that assess penalties for early withdrawals.

The same rationale goes for a vacation fund or money you’ll need for a down payment in a year or two. If you’re saving the money anyway, you might as well make some extra interest on top of it. See how much of a difference a few points can make using our savings account interest rate calculator.

Similarly, high-yield accounts can help you reach your savings goals, particularly if you are not the most disciplined hoarder. Many banks offer direct deposit and automatic savings plans that allow you to set aside a specified amount each month. This can help you save when you know you might not otherwise.

Finally, high-yield accounts are a safe investment, especially if you are nervous about the financial markets. For one, they are FDIC insured, so you have no risk of losing your money. And they can offer steady if not spectacular returns.

Want to Know More?

• What are Savings Accounts?
• Advice for Getting the Best Deal on a Savings Account
• Grilling Guide: Questions to Ask Banks About High-Yield Savings Accounts