High yield savings accounts do exist in some regional areas. I just heard the other day on the radio of a bank that will pay you $20/month if you make X electronic deposits per month. They didn’t mention any specific balance requirement. I think I’ll have to pay attention the next time that particular advertisement is on, even if I"m in traffic.
There is another avenue of savings that a lot of people don’t consider. What about a simple brokerage account? The account could be opened with very little minimum balance, like I did over at Fidelity. I opened the account with only $50, and began by adding $20/month into it. Since the beginning, I have increased the savings into that account to $300/month in an effort to save more as the Financial Samurai often suggests to avoid that sinking feeling. Now, keep in mind that I have also set up electronic transfer capability to the account so that I can choose to add extra cash if I want to try to avoid spending it.
You should be aware that until the account has a certain amount of cash ($2,500 or so), you may not be able to invest in some of the funds that they offer. That is often waived if you have automatic deposits every month of a certain amount. My goal however is to increase this account as much as possible through a combination of funds and individual stock investments.
You may also like to know that the earnings are taxable just like a traditional savings account. So when the brokerage account earns money through dividend payments or the regular core account increases that occur if you don’t have the money actively invested in a particular stock/bond/fund, you will have to pay taxes on the amount that it has earned over the course of the year.
As a final note, I have no desire to do away with regular savings accounts as we have one of those also. However that account is held at a more local bank to make it even easier to access at a moments notice. This however seems to be a way for my money to grow faster due to the broader investments that are available.