High-Yield Savings

These days high interest savings accounts are a hot topic, and while interest rates aren’t what they used to be it’s important to understand the different types of accounts available to you. Here’s a look at common differences between what you see on TV versus what we offer.

Types of accounts. Typically, the base level savings or share accounts offered by many institutions are at a rate of less than 1.00% APY. Most institutions will also offer additional savings products with higher rates such as High Yield Savings Accounts (HYSA), Money Market accounts, Brokerage Sweep accounts, or Certificates of Deposit/Term Share Certificates (CD). Of those options, Amherst FCU specializes in CDs.
Rates, terms & fees. While most people tend to focus on the advertised interest rate, there are additional components to take into consideration. While our CDs come with competitive fixed rates and no monthly fees, other high yield accounts you see offered may come with a variable rate, which can fluctuate over time, as well as monthly fees or potentially other conditions to keep the account open.
Understanding APY and interest earned. When you see a savings rate advertised it is usually denoted with the abbreviation APY, or “Annual Percentage Yield.” In simplest terms, this refers to the percentage of your account balance that will be paid to you in interest over the course of a 12-month period. For example, a CD with Amherst FCU with an interest rate of 3.50% APY and an average daily balance of $10,000 would receive $350 in dividends over the course of a 12-month term. A similar account elsewhere with a higher advertised APY may seem like a better offer, but could potentially result in less earnings due to variable rates, monthly fees, or other terms & conditions.

Additional Tips:
Many of the high yield accounts you see advertised on TV are from fintech or online banks, meaning they don’t have any local physical locations to visit or contact if you need assistance with your accounts.

Published February 1, 2026