High-Yield Savings Accounts (HYSA)

If a regular savings account is flying in economy, a high-yield savings account is like upgrading your money to first class. It pays you wayyyy more interest rates typically 20-30 times higher than standard savings accounts.

Now that probably sounds like a lot of money, yes it is, when the National average Savings Account only gives about 0.05%, a HYSA multiplies that to about 4 to 5%. How is that possible ? simply because HYSA are only offered by online banks or brokers, which don't have fancy buildings to maintain. So they pass those savings right back to you.

Check out a Website that lists high yield savings accounts with a long list of banks or brokers in the description box with the interest rates they might offer. https://www.doctorofcredit.com/high-interest-savings-to-get/

The thing about HYSA is that you have to really shop around to find a good one. A lot of them will start out by enticing customers with a teaser rate where they give you just a bit above what they initially are going to settle on. Keep those in mind as you shop. The first rate may be the teaser rate.

When you are looking at different HYSA you wanna make whichever one you go with is FDIC insured to at least $250k and you also have to be aware that when you put your money in a savings account including HYSA you are limited to the numbers of withdrawals you can make each month. So just be aware of that.

What’s it best for?

A HYSA is best for storing money you want to grow safely, access easily and is fully liquid.

• You can use it for an emergency fund- Keeps your 3–6 months of expenses safe and earning interest.

• For short term savings goals like vacation, new car or wedding.

• For a home down payment to help your money grow while you prepare to buy.

• As a buffer between checking/investing, great for holding cash temporarily before investing or paying big bills.

• Storing your sinking funds for things like insurance premiums, property taxes, holiday spending.

  HYSA is not great :

• For daily transactions (use checking instead).

• Long-term investing (use brokerage or retirement accounts like IRAs/401(k)s).

• Holding large balances over FDIC limits (currently $250K per depositor, per bank).
  
  If you're thinking about opening a high-yield savings account, here’s a quick checklist to help you choose the best one:

What to Look For in a HYSA

Top HYSA Options (as of June 2025)

Many banks offer cash signup bonuses of up to $500 when opening a new account. Take advantage of those whenever you can.

Personally, I prefer SoFi because it consistently offers the highest APY. However, it’s not worth the hassle of switching to Sofi now if you already have your savings with another HYSA just to make 0.50% more, which amounts to like $20 a month. Have your sights set on BIGGER goals, like financial freedom, so I don’t waste time on $20 questions. Focus on $1million dollar questions.

Are you ready to make your money work overtime—no caffeine required? It’s time to open that HYSA.

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