A high yield account is a deposit account offering higher APY (annual percentage yield) than traditional deposit accounts. High yield accounts are available through both brick-and-mortar and online banks. Such an account requires one to keep a higher initial deposit and maintain a high balance. High yield savings accounts are among the most recommended investments.
Banks that Offer High Yield Accounts
Both online banks and those with a physical setup may offer high yield accounts.
Online banks: As these banks have no major expenses such as those on cashiers, rent and paperwork, they pass the savings to their customers via high yield accounts, offering higher interest.
Brick-and-mortar banks: These banks do not have as large savings as online banks. They offer high yield accounts to valuedcustomers. In order to qualify, one must meet at least one of the following criteria: (a) open with a huge initial deposit (b)maintain a high balance and (c) make limited transactions.
Benefits of a High Yield Account
Advantages of a high yield account include:
High interest rates: The interest on a basic savings account could be as low as 0.20%. High yield accounts offer five-to-tentimes higher interest than basic savings accounts.
Automatic transactions: High yield accounts include facilities like direct deposit, ACH (automated clearinghouse) transactions and automatic deposits.
Pay bills online: Many online high yield accounts offer the free service of paying your bills online.
Easy access to money: A number of high yield accounts offer ATM access at several locations.
In Nigeria, as well as around the world, a majority of taxpayers view tax not as a contractual contribution to government expense, but as an involuntary tribute to be paid to avoid prosecution and penalty. Merely transcribing taxes from economic textbooks into local law will not work; tax regimes have to be developed from within the society, and targeted at the peculiar needs of the government. Tax policies have to be written by the people – and for the people. Only then would a sense of participation and expectation be truly generated, and the tax system manifestly effective.
Eric J. Gleacher Distinguished Service Professor of Finance at the Booth School of Business at the University of Chicago. IMF’s Chief Economist from September 2003 to January 2007. Inaugural recipient of the Fischer Black Prize.
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