With Bankrate’s compound interest calculator, you can see approximately how much interest you’re missing if you have a low-APY account.

Where is the best place to put your savings?

Your high-yield savings account is a great place for short-term savings goals and your emergency fund. Unlike most certificates of deposit (CDs), savings accounts allow easy access to your money, as needed, without charging a penalty. To find the best high-interest rate for you, browse Bankrate’s list of the best high-yield savings accounts.

You can have multiple savings accounts if you’d like to have separate places to store money for different goals. Or consider tools like Ally Bank’s buckets feature that lets you allocate money in your savings account to specific goals, such as a wedding fund and a home down payment fund.

Should you let your money sit in savings?

Experts recommend keeping your emergency fund in a high-yield savings account as well as money for short-term goals such as a home down payment or vacation. Short-term financial goals should be things you plan to accomplish within three years. Beyond that, the money may be better off in an account where it can have the chance to earn a higher return, such as a brokerage account.

High-yield savings accounts are great for emergency funds and short-term savings goals because the money is FDIC-insured — as long as you follow the FDIC’s rules and guidelines — and you can still earn a decent return on your money. Before you choose a savings account, confirm that it is FDIC-insured so you know your money is safe.

(Bankrate senior writer Karen Bennett contributed to an update of this story.)

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