A high-yield savings account is essentially the same as a standard savings account, but it pays a much higher yield on your money. The national average yield on savings accounts is 0.59 percent APY.

The average APY on savings accounts is just 0.57 percent, but you can find high-yield savings accounts paying more than 5 percent.

Once that interest is in your account, you begin earning interest on it, too. This is known as compound interest. For example, if you deposit $10,000 into a high-yield savings account that earns a ...