CDs VS HYSAs?

If you want to know the difference between a high yield savings account and a CD, watch my video. And see which best fits your needs!

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Let me know if you have a high yield savings or a cd in the comments below 👇

#money #investing #finance #personalfinance

[CalltoLeap]

Both HYSAs and CDs are great tools to save money. Just remember with CDs you cannot touch your money for a specific amount of time. With HYSAs you can. But use whatever fits you and your financial goals 🙂

[CalltoLeap]

With a CD, you can potentially lock in a higher rate, while HYSA interest rates can reduce depending on what the Federal Reserve decides.

[purp]

HYSA is perfect for interest rates and economic impact in the long term. Thank you for providing closed captioning. I am Deaf, and I speak ASL and English. I learn some from you. Thumbs up!

[shabbyLaw]

It's not about liking one better. It's about the purpose. Do you plan on needing your money right away or Will you not need to touch your money for a specified. If you don't plan on needing to touch your money and CD may often be better for that purpose.

[YoungExpress-leqp]

In my opinion you also can build the CD ladder . Like 3, 6,9,12 months. ❤
Thank you Steve. What’s nest ? Can’t wait.

[ceciltyler]

Fun fact- credit union’s offer CDs with all the benefits of a high yield savings account and then of the downsides of a CD. PLUS you can add money to them.

[lisapila]

I use both. Thank you again for the information Steve

[magnumdong]

I'm shopping for both right now. He's right about all this. Go to your local credit union to product match HYSA with their competitors. Please do a video on what company to invest (schwab and fidelity), their pros cons, which offers better HYSA, better APY on IRA's, which has less fees.

[LordOfRebls]

Access to the funds is the biggest differentiator. Banks lock in the rate because they’re secure the funds will be there the duration of the CD, and if it isn’t the customer covers part of the loss with the penalties.

[Grace]

HYSA is like relationship with your girl friend.
You can break up anytime no penalty.

CD is like relationship with your wife marriage.
You pay penalty if you try to
break up by law.

[MarkDanger]

My strategy right now is being in a high yield savings account, then if fed cuts interest rates, tech stocks are likely to go higher, so I'll buy a super high dividend tech ETF like QYLD or JEPQ because they're less volatile.

[basilmcmillen]

CD’s are locked and penalty for withdrawing outside the term savings is fluid. CD’s also lock the rates even higher yield savings varies! Now you know

[MrGates]

Same, although when u r younger and less experienced with $ opening a CD makes u more $ aware. So for younger folks I'd say 25 n under and or inexperienced investors, CDs is the way. Of course all that is just my opinion

[mikelee]

If you do not need it. Why? Rates will go down.

[jorad]

CDs do have a fixed rate at x months after that it does drop but high yield is variable so it fluctuates up and down, I have both, but the better choice is the 529 educational account, for some businesses there is a cap, put lets say 500k the day your baby is born, the account will mature at the age of 18yo for college tuition and you can pull it out without tax or penalties, everything in there is yours entirely

[robertharrington]

How about Step Ladder CD's you get a higher interest rate. You put in an amount in every Month, before you know it you have a CD available every Month and you just add to it when you renew it or take you money out for what you need.

[curlyandstrong]

Do I have to pay taxes for the money I keep in a HYSA?

[mannypaulin]

HYSA sucks because you have to follow procedures to get the interest. Pls inform the public. CD much better.

[LauraLaDiabla]

Thanks for the explanation. I’m gonna start saving for a house now but knowing I have impulsivity with money a CD account sounds perfect. I need an account that won’t let me dip into it to hold me accountable haha. And maybe a high yield for longish term savings for things like vacation funds.

[chillgick]

No -penalty cd 's is best of both worlds. Have go keep in bank for 7 days then you can close it at anytime. You can open them up with as little as $500. I opened up several at $1, 000 increments so if I need emergency money I can just close out one or two.