SAVE MONEY
It Never Makes Cents
Four dollars.
That’s what my dad earned last year on his five-figure savings account. Meanwhile, that same bank turned around and loaned out his money at 7% interest — practically laughing at him behind his back.
He made one key mistake that I hope you’re not making as well.
Last year, my dad kept his savings in a Traditional Savings Account instead of a High Yield Savings Account (HYSA).
It cost him. Big time.
What’s an HYSA?
If you’re unfamiliar, HYSAs are online alternatives to traditional brick-and-mortar banks. They’re called “high yield” because they pay you significantly more interest (APY) than your typical savings account.
Simply put: when you deposit money into an HYSA, you earn more.
Check out this calculator from Marcus by Goldman Sachs to get an estimate of what your money could be earning. (Scroll down a bit after clicking.)
What’s the Best HYSA?
I get this question all the time, but honestly there’s no one-size-fits-all answer.
Instead, I recommend following this simple framework for choosing the right one:
Trust: Look for banks with strong reputations and positive reviews. Familiar names can be even better.
Don’t Chase the Highest APY: These rates change with the economy. A 0.10% difference isn’t worth it if the app or customer service aren’t strong.
FDIC Insurance: Always make sure the account is FDIC insured.
Still have questions about HYSAs? Check out my video below!
YOUTUBE
In Case You Missed It
In this video, I answer the most commonly asked questions about HYSAs.
Keep Saving,
Steve | Feasible Creative
“Creating opportunities means looking where others are not.” - Mark Cuban
Disclaimer: The content provided in this newsletter is for informational and educational purposes only. It is not intended to be a substitute for professional financial advice. Please consult with a financial advisor before making any financial decisions. This newsletter may contain affiliate links, which means I may earn a commission if you make a purchase through these links, at no extra cost to you.