When Should You Use a High Yield Savings Account?

When Should You Use a High Yield Savings Account?

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[CraZzynrGy]

My emergency fund is in a HYSA earning 3%. It feels so good seeing free money for just having it sit there while I invest in etfs while the market is down😊

[EJx]

Our 1 year buffer funds are sitting in high yield...getting 3% right now and it keeps going up every month right now

[TheUnfriendlyfire]

1:45 “I can remember in the not too distant future…”

Bo is a time traveler, confirmed?

[matthewsawczyn]

US Treasury I Bonds are currently at 4.3% which is not too shabby…

[Stormnorman]

For decades my Bank of America savings was only giving back .01 percent interest. I have since closed the account and switched to a Hysa

[todd]

My high yield savings acct rate just went up to match my current mortgage rate.

[godFATHERfrazer]

Cash? Investment grade corporate bonds or structured notes if over 3 years. 1-3 years could go laddered bonds. And these are ONLY if you are ultra conservative. Less than a year, sure, go cash.

[Seniormexico]

T bills can pay more than high yield savings account.

[richardsanchez]

Ok so what about short like real short term? Like my property taxes? I fully fund the account with 4k at the beginning of the year and have to pay it in June and December.

[Neo_Finance]

I like the High yield for quick emergency, but most of my cash is in these tasty treasuries! Who would not use these t bills at these rates!?

[frank-the-tank]

Discover's standard saving account is over 4%

[LockedinAHazee]

heard HYSA has variable APY that can go up or down within a year. If that’s the case, is HYSA the best place to park your emergency fund? Won’t money be lost to inflation if rates go down?

[aiswebmaster]

I have my emergency fund in a HYSA earning 3.25% (lending club), there's no risk so lets make money on my emergency fund. It's also nice to have it separated so I know the rest is investable if I wanted. Pretty much all the rest of the cash that isn't spent every month or invested in 401ks etc. goes into my brokerage and dca into index funds. I do plan that I'll take money from this brokerage some time in the next 10 to 15 years, when I want to buy property, but I don't have a set timeline, so even if I never buy property, I'm constantly investing and growing my investments no matter what.

[enigmathegrayman]

I’ve invested everything outside of my day to day expenses. There’s no such a this are an emergency fund. For emergencies I’ll sell an asset and deal with the issue. Vacations and cars I’ll pay with day to day income.

[jbrumundsmith]

You can get 2.5% on a CHECKING account at SoFi right now.

[Kyle-kred]

More than 1 year away but less than 5? Say it with me people: IBONDS!

[mere_cat]

CDs or treasury bills might be nice if you know you won’t need the money for a couple years.

[cramsa]

These people haven’t even factored INFLATION… in reality, at best, you break even if the yield matched real inflation levels.

[mandizmouth]

What are the cons of a high yield account? Tax impact?

[torney]

I'm making $2, 500 interest a month on a high yield savings 😊