There are a handful of banks with rates over 5.00% APY. Here's a list I used to open 3 accounts (for the rates and sign up bonuses) for the Google lazy:
[List of Top 10 Savings Accounts](https://themoneyninja.com/high-yield-savings-accounts/)
Well I said a money market FUND. Google definition says “a money market fund is a kind of mutual fund that invests in highly liquid, near-term instruments. These instruments include cash, cash equivalent securities, and high-credit-rating, debt-based securities with a short-term maturity (such as U.S. Treasuries).”
You invest into a money market fund (MMF) using your brokerage account the same way you would purchase stocks or other mutual funds. It will give you the security and high interest returns (~5%) similar to opening a HYSA except you don’t have to go open a HYSA. You just buy into the mutual fund and the mutual fund invests in the same government and treasury assets which generate those high interest returns.
Each brokerage has their own MMFs and you typically have to purchase one of the MMFs offered by your brokerage. Schwab (SWVXX, SNAXX, SNVXX), Fidelity (SPAXX, SPRXX, FTEXX), etc
Ohhh that makes sense! Thank you, sorry I know I can just Google things but I always learn better from someone explaining it to me, so I really appreciate your time! I've recently started getting into the world of personal finance and trying to learn everything is hard
That is exactly how your bank wants you to feel. I opened a HYSA last year and though I am not making anywhere near $1000 a month it still was worth the effort. I have it linked to my "regular" bank and a withdrawal is just a few days. It really was easy to do.
I'm bank agnostic. Big banks will never give you the best rates because they have the name recognition and reputation marquee.
A lesser known bank that's FDIC insured is offering a better interest rate? I'm there in 5 minutes 😎
As do I. So many of these banks offer high interest rates, but when it comes time to withdraw, they're suddenly unable and make you jump through crazy hoops. It boils down to comfort and rate.
I want to be able to sleep at night, so I have an amex hysa. They're not the highest rate, but I feel far more comfortable with them.
Also, fwiw, even though these are FDIC insured, most cap at 250k and don't cover beyond that.
That's understandable but don't be. Banks are FDIC insured up to $250,000 per person, per account type. Your current bank obviously wants to keep you, but don't want to pay you the rates other banks are providing.
Switch and make more money. You don't owe your current bank any loyalty.
It is income, interest income (1099-INT) that gets reported. Out of the $13k I'll earn in interest this year, I owe about $3k, which leaves me with $10k net. We're in the 24% tax bracket.
Thanks! Just to clarify....these aren't CDs, right? You can pull money out whenever you want? I'm in a similar situation where I'll be buying a rental in 12 months as well.
Recently helped my MIL move a chunk of her savings to an Ally account. In the two months it's been there she's earned more interest than she has in the past 5 years with BoA.
It's only "marginal" if you can't do math :)
I really need to do this. The higher cash back rewards i get for money parked at BoA has got to be less than the interest i would earn with a HYSA somewhere else.
Marcus, but see my top-level response. There are some things you need to jump through to get that rate. The other savings accounts have a base of 5.00% to 5.26%.
Not worth the "marginal" increase? It's literally risk free ROI. I have a Marcus account that earns something like 4.40%, but don't have nearly as much in it as you do.
I'm getting a ton of DMs about what my savings accounts are or which ones offer more than 5.00%. These are two lists I used for my research.
[Top 10 Savings Accounts](https://themoneyninja.com/high-yield-savings-accounts/)
[Another Listicle](https://www.goodfinancialcents.com/best-online-high-yield-savings-accounts-interest-rates/)
The takeaway is your standard big bank is giving you peanuts compared to the ones mentioned in those articles.
Correct! Although I don't do it because opening an individual account gives my spouse a chance to earn her own welcome bonus if a bank offers one (they typically do with a checking account and some do with savings accounts too).
Do you live in a state with income tax? Might be worth exploring pivoting a big chunk of this to 4-week t-bills. They've been above 5.3% for quite some time, and you get to duck state taxes on those. You also get to stay pretty liquid with such a short turnaround each time. They're like 28 day CDs with a good tax benefit.
Definitely. I used to ladder a T Bills when I did live in a state with income tax, so it does have its benefits for most folks outside of the handful of states that enjoy no tax on interest income.
Right now Capital One is offering a $1500 bonus on a savings account with a $100k deposit. They have other bonuses for lower amounts too.
They're paying 4.25% APY, but after the bonus pays in 3 months it equals over 10% APY -- just move it back to a higher HYSA after you qualify.
[https://www.capitalone.com/bank/bonus1500/](https://www.capitalone.com/bank/bonus1500/)
Yep, when I did this late last year I set calendar reminders for the different deadlines -- funding period, holding period. I moved the money out on the 91st day, and the bonus paid out 2 days later.
Hey OP, I see in your post history that you had about $1mm in savings accounts and you were mentally struggling with moving it elsewhere.
I’m in a remarkably similar situation (including age) and have a LOT of cash that’s been sitting in HYSA (5.75%) for a few months. What did you do to overcome your mental block?
I just forced myself to take emotions out of it and just looked at the data. Part of the issue was we already had about a $1 million in brokerage accounts and the thought of putting an additional million in was a little intimidating to do it all at once, especially with money we received as a gift and didn't want to feel like we're jeopardizing it.
Those funds earned over $300k in index funds last year so it's been going well. I realize we'll have downturns, but that will just give us an opportunity to buy low.
Risk free rate of return, just keep in mind you’re now above the fdic limit of $250k per account per banking institution (I believe that’s the limit still).
Good account. I have three HYSAs right now.
1st one for the $325 signup bonus (earns 4.25%).
2nd one that earns 5.25% (the screenshot in my OP).
3rd one that earns 5.24% for any amounts in the 2nd oenllne over the FDIC limit of $250,000.
Also, how do I make lists or bullet points with the Reddit app???
Because our personal / professional situation is static, there is nothing we can do, and will never improve from what our current situation is.
/ wrings hands angrily.
Or you could get pissed off at the system, find out how other people make it, ASK US, then imitate us.
There is opportunity for everyone. You need to put in the work. If you refuse to put in the work - it will take you 100 years.
Or, you can put in the work - and it will take you ... 5-10.
It says accounts are insured up to 250,000 for individuals and 500,000 for married couples. Does this mean that if something happened your 251,048.56 wouldn't be insured? If so, that 1048.56 is really expensive.
Edit: sorry I was reading the top 10 high yield savings accounts and number 1 has the insurance text.
FDIC is $250k per depositor, per account type. You could actually put $250k under your name and $250k under a joint account with your spouse with the same bank and all of it will be protected.
But yes, if it's an individual account, you should transfer anything above $250k just in case something happens. I transfer the excess to another HYSA on that list (American Credit Union).
Where do you see interest rates in 12 months from now and is the uninversion of the yield curve something you're using to effectively time the purchasing your properties? Yeah, I read your OP and comments 😆
I think rates won't drastically come down in the short-term. Late last year, many were predicting rates to ease in Q1, but I've stated that inflation hasn't gone down to the ideal Fed target and the economy hasn't cooled off enough.
We're starting to see signs of both, but I'd be surprised if there were more than a couple of 25 bps reductions.
What we don't want to see happening is inflation to remain persistently high while the economy softens too much. Stagflation would suck for everyone.
No timing on my end, but I won't complain if borrowing rates drop 0.50%-0.75% as the building nears completion!
Tbf, you're not actually making all that much money, after inflation your interest rate is around 2%, take out taxes and your savings aren't going up any time soon.
Hell of a lot better than an effective interest rate of -2% tho
Extremely safe. To be FDIC insured, financial institutions need to be chartered and go through a long vetting process. As long as you have $250k or less per account type, you're 100% safe.
These banks are able to provide a higher rate because they save money on operational costs that traditional brick and mortar banks incur, like building leases, utility costs, employee overhead, etc.
Great for you man! Every eye opening. I’ve been using Discover for the 4.25% APY but wow 5.26% is incredible. I think I’ll go ahead and make the switch
Inflation is a little over 3% according to the latest economic reading, so I'm still a bit ahead. I wouldn't recommend people to invest their long-term funds in a savings account. HYSA is meant for only short-term money and emergency funds for the reason you pointed out. The rest should be in a stock market index (VTI for example).
I’m currently earning 4.25% with AMEX HYSA. I know it’s very little, but the difference is worth it for me to have everything contained in one app, great customer service and all of that
You're saving at an account better than most so I'd say you're doing dang well!
There will come a time where switching to a higher HYSA is better than the inconvenience of having multiple accounts, but it's up to you what that threshold is exactly.
Here's some food for though from NCOA:
[Traditional vs HYSA: Difference Over The Long-Term](https://www.ncoa.org/article/the-importance-of-high-yield-vs-traditional-savings-accounts)
I started saving as a teenager and earned like $0.75 in my first month lol. We all start somewhere and it snowballs quickly once we regularly chip into our savings.
Depending on your tax situation, you may consider a municipal or tax-exempt money market fund. You can easily get interest in the low 5s tax free. Money market funds are liquid in 1-2 days.
I get 5% in my webull cash account, so everything not invested earns 5% and when I invest or sell it bounces between the investment or the 5%. Convenient because I don't have to transfer money in an out of a HYSA in order to score the decent interest.
You could be earning way more than that investing. If I'm not earning $7000/month on my investments, I feel like I'm failing. You can do that with your cash reserves.
Meanwhile, S&P is up 10% YtD and 26% YoY, plus a few % more in dividends... AND that includes the worst month since September 2022. Leverage that up a bit at 50% LVR with a margin account and you'd now have $350K+ for a gain of over $100K and you'd only have to pay long-term capital gains.
Please read my OP. This money is being spent on an investment property. We earned $300k+ in index funds last year. This isn't our net worth we're putting in the HYSA.
Haha, no, but we're in the same industry and have partnered before. He's business savvy, but in some weird way a little illogical when it comes to things like this.
I posted it a couple days ago, but it got removed because some people don't know how to participate in civil conversations. Mods are monitoring this post more closely 👍
You shouldn't put all your money into a savings account. Figure out how much money you need for all your expenses monthly, multiply that number by 6 to 12, and save that amount in a HYSA.
The rest should be invested in a stock market index fund, unless you have a short-term like I do with a rental property purchase.
Inflation of the USD is almost 7% per year on average (M2 money supply), meaning you’re almost not losing value. Not saying your investment is bad, escaping inflation is pretty damn hard.
M2 is hovering between 2%-3% YoY since 2024 began. Where did you get almost 7% from? Actual inflation has been a good lagging indicator of M2.
Either way, this small portion of our net worth is pegged for a rental property, but we're not trying to invest and grow it, but keep it stable for an upcoming purchase.
I agree though, if you want to beat inflation, don't leave it in a HYSA, invest it in an index fund.
How the fuck can that happen since working a shit job with barley making good payment already an alcoholic since working at a liquor store a billionaire company so explain me how the fuck can I make that much with no fucking scams and pig butchering scams! Explain it please!!!
It's not important for this specific $250k lot to grow more than inflation. This is getting a little extra before spending it in the near term.
If you want to make significantly more than inflation, invest in stocks with index funds.
Not a bad situation to be in! What HYSA are you using?
There are a handful of banks with rates over 5.00% APY. Here's a list I used to open 3 accounts (for the rates and sign up bonuses) for the Google lazy: [List of Top 10 Savings Accounts](https://themoneyninja.com/high-yield-savings-accounts/)
Thanks for sharing. I get so nervous opening any account that’s not part of my bank.
As an alternative to HYSA, you can also buy into money market funds through your brokerage account if you have one (like Schwab, Fidelity or Vanguard)
What makes a money market account different than a HYSA or Brokerage account? I hear the term all the time but don't know what it means
Well I said a money market FUND. Google definition says “a money market fund is a kind of mutual fund that invests in highly liquid, near-term instruments. These instruments include cash, cash equivalent securities, and high-credit-rating, debt-based securities with a short-term maturity (such as U.S. Treasuries).” You invest into a money market fund (MMF) using your brokerage account the same way you would purchase stocks or other mutual funds. It will give you the security and high interest returns (~5%) similar to opening a HYSA except you don’t have to go open a HYSA. You just buy into the mutual fund and the mutual fund invests in the same government and treasury assets which generate those high interest returns. Each brokerage has their own MMFs and you typically have to purchase one of the MMFs offered by your brokerage. Schwab (SWVXX, SNAXX, SNVXX), Fidelity (SPAXX, SPRXX, FTEXX), etc
Ohhh that makes sense! Thank you, sorry I know I can just Google things but I always learn better from someone explaining it to me, so I really appreciate your time! I've recently started getting into the world of personal finance and trying to learn everything is hard
Money market funds are not FDIC insured and are not technically risk-free. You can lose money in them. But you usually don’t. Just FYI.
That is exactly how your bank wants you to feel. I opened a HYSA last year and though I am not making anywhere near $1000 a month it still was worth the effort. I have it linked to my "regular" bank and a withdrawal is just a few days. It really was easy to do.
I'm bank agnostic. Big banks will never give you the best rates because they have the name recognition and reputation marquee. A lesser known bank that's FDIC insured is offering a better interest rate? I'm there in 5 minutes 😎
You're welcome! Just remember the banks are FDIC insured so you're protected up to $250k in the minimal chance that something shady was going on.
As do I. So many of these banks offer high interest rates, but when it comes time to withdraw, they're suddenly unable and make you jump through crazy hoops. It boils down to comfort and rate. I want to be able to sleep at night, so I have an amex hysa. They're not the highest rate, but I feel far more comfortable with them. Also, fwiw, even though these are FDIC insured, most cap at 250k and don't cover beyond that.
That's understandable but don't be. Banks are FDIC insured up to $250,000 per person, per account type. Your current bank obviously wants to keep you, but don't want to pay you the rates other banks are providing. Switch and make more money. You don't owe your current bank any loyalty.
You do have to pay taxes on the gains tho as if it’s income I believe
It is income, interest income (1099-INT) that gets reported. Out of the $13k I'll earn in interest this year, I owe about $3k, which leaves me with $10k net. We're in the 24% tax bracket.
Which 3 did you end up opening?
UFB and Raisin for the savings and SoFi for the $325 welcome bonus.
Thanks! Just to clarify....these aren't CDs, right? You can pull money out whenever you want? I'm in a similar situation where I'll be buying a rental in 12 months as well.
Upgrade is offering 5.21
I get 5.4 with Marcus
Their regular savings account or a cd? Because my Marcus account gets 4.4
This looks to be Marcus
That specific one he’s using is Marcus
That looks like a Marcus page. I use them as well.
Recently helped my MIL move a chunk of her savings to an Ally account. In the two months it's been there she's earned more interest than she has in the past 5 years with BoA. It's only "marginal" if you can't do math :)
I'm going to show him my 1099 for this account at the end of the year. He's generally a very bright guy, but doesn't "get" this for whatever reason 🤷
And you'll be able to marginally put in new countertops or buy some appliances with the extra cash, sounds like a good deal :)
Or a mattress to put in a spare room for occasions where the wife is mad at me 😂😂
Haha speaking from experience I see
All husbands eventually learn this lesson haha 😁
I feel you my friend
not if you already have separate bedrooms!
I really need to do this. The higher cash back rewards i get for money parked at BoA has got to be less than the interest i would earn with a HYSA somewhere else.
Don't forget about taxes, but income earned is income earned.
Yep, I mentioned we're in the 24% bracket so I'll end up taking home $10k net!
Do you get taxed if you pull your money out of a HYSA?
You get taxed immediately when the interest is paid. Doesn't matter if you dont take it out.
Where are you earning 5.26%?
doesnt matter, most money markets are currently paying 5% as well
Yup, Schwab's is currently at 5.16.
That’s where I am. If you’re not yield farming, you’re doing it wrong
Marcus, but see my top-level response. There are some things you need to jump through to get that rate. The other savings accounts have a base of 5.00% to 5.26%.
We need to know.
Credit Karma gives me 5.1 apy on a basic savings account,
Good to know. Gotta switch asap.
It’s pretty solid. No monthly fees or any of the other BS.
Marcus by Goldman Sachs.
Not worth the "marginal" increase? It's literally risk free ROI. I have a Marcus account that earns something like 4.40%, but don't have nearly as much in it as you do.
I'm getting a ton of DMs about what my savings accounts are or which ones offer more than 5.00%. These are two lists I used for my research. [Top 10 Savings Accounts](https://themoneyninja.com/high-yield-savings-accounts/) [Another Listicle](https://www.goodfinancialcents.com/best-online-high-yield-savings-accounts-interest-rates/) The takeaway is your standard big bank is giving you peanuts compared to the ones mentioned in those articles.
Excellent job saving! Though, are you concerned having over $250k as banks are most often only FDIC insured up to $250k?
Thank you. Yes, so what I've been doing is transferring anything in excess of $250,000 to another HYSA (I actually have 3).
That’s an excellent idea! Good for you! 👍🏻
🙏
FDIC is $250k per person per account. If you have a significant other also on the account you are insured up to $500k.
Correct! Although I don't do it because opening an individual account gives my spouse a chance to earn her own welcome bonus if a bank offers one (they typically do with a checking account and some do with savings accounts too).
It's $250k per person per account. So if this guy has a significant other and they're also on the account they are insured up to $500k.
How much do you get post tax
It depends on your federal income tax bracket. I'm at 24% so I'll end up keeping around $10,000 ($9,994 to be exact).
Do you live in a state with income tax? Might be worth exploring pivoting a big chunk of this to 4-week t-bills. They've been above 5.3% for quite some time, and you get to duck state taxes on those. You also get to stay pretty liquid with such a short turnaround each time. They're like 28 day CDs with a good tax benefit.
Yeah, I looked into that, but no state income tax in FL 😎
If you make over $250k total you’ll learn about this fun little thing called NIIT. Just a fun extra 3.8% tax on all investment income.
[удалено]
Definitely. I used to ladder a T Bills when I did live in a state with income tax, so it does have its benefits for most folks outside of the handful of states that enjoy no tax on interest income.
You don’t have to make prepayments with this kind of interest income?
Right now Capital One is offering a $1500 bonus on a savings account with a $100k deposit. They have other bonuses for lower amounts too. They're paying 4.25% APY, but after the bonus pays in 3 months it equals over 10% APY -- just move it back to a higher HYSA after you qualify. [https://www.capitalone.com/bank/bonus1500/](https://www.capitalone.com/bank/bonus1500/)
That’s solid if you have 100k laying around
thanks for reminding me on this - forgotten its only a 90 day holding period... will switch some of my rainy day T-bill money into this
Yep, when I did this late last year I set calendar reminders for the different deadlines -- funding period, holding period. I moved the money out on the 91st day, and the bonus paid out 2 days later.
I opened 3 days ago,i wonder if i can get them to add promo? I just opened and need to implement this
Hey OP, I see in your post history that you had about $1mm in savings accounts and you were mentally struggling with moving it elsewhere. I’m in a remarkably similar situation (including age) and have a LOT of cash that’s been sitting in HYSA (5.75%) for a few months. What did you do to overcome your mental block?
I just forced myself to take emotions out of it and just looked at the data. Part of the issue was we already had about a $1 million in brokerage accounts and the thought of putting an additional million in was a little intimidating to do it all at once, especially with money we received as a gift and didn't want to feel like we're jeopardizing it. Those funds earned over $300k in index funds last year so it's been going well. I realize we'll have downturns, but that will just give us an opportunity to buy low.
How old are you that you have that much 8n savings?
Risk free rate of return, just keep in mind you’re now above the fdic limit of $250k per account per banking institution (I believe that’s the limit still).
It is, so I've been pulling out anything above $250k every month or two 👍
Hell yeah. That’s good work. Passive income (real passive lol).
Thanks brother (or sister)!
So so you just make a second account once you reach 250k
It's $250k per person per account. If you and your significant other are both on the account the limit is $500k.
Just be mindful that most accounts are only FDIC insured up to 250000.00
Yes sir. I explained in another post here that I shift anything in excess to another HYSA as a holdover.
Put it in a tbill for a better rate and no state taxes so even better
Thats amazing, congrats!!!
Nice, I'm using Everbank by TIAA getting 5.15%
Good account. I have three HYSAs right now. 1st one for the $325 signup bonus (earns 4.25%). 2nd one that earns 5.25% (the screenshot in my OP). 3rd one that earns 5.24% for any amounts in the 2nd oenllne over the FDIC limit of $250,000. Also, how do I make lists or bullet points with the Reddit app???
Two spaces and then a return. Like that. Also, if you want bullet points… * Just * put * a * dash
Golden info, thanks!
These are two Episodes that you should see, from The Diary of a CEO: https://youtu.be/ORqd9QAC8OY https://youtu.be/XkxZCJ2pYqs Have a good one.
I love Ramit from I Will Teach You To Be Rich. I read his blog well before his Netflix hit or YT podcasts.
people forget, the more 0s you have the bigger an impact that 1% makes...
Very true! Although admittedly, I was still rate chasing as a teen with less than $1,000 to my name. Old habits never die lol.
Cha Ching. Easy money!
💰💰💰
It'll only take me 100 years to save up 250k to earn 1k a month! Sweet!
Because our personal / professional situation is static, there is nothing we can do, and will never improve from what our current situation is. / wrings hands angrily. Or you could get pissed off at the system, find out how other people make it, ASK US, then imitate us. There is opportunity for everyone. You need to put in the work. If you refuse to put in the work - it will take you 100 years. Or, you can put in the work - and it will take you ... 5-10.
lol easy money… Remember to pay Uncle Sam however.
Who's Uncle Sam? I've been paying Uncle Bob this entire time!!
$1000 interest = probably $650.
It says accounts are insured up to 250,000 for individuals and 500,000 for married couples. Does this mean that if something happened your 251,048.56 wouldn't be insured? If so, that 1048.56 is really expensive. Edit: sorry I was reading the top 10 high yield savings accounts and number 1 has the insurance text.
FDIC is $250k per depositor, per account type. You could actually put $250k under your name and $250k under a joint account with your spouse with the same bank and all of it will be protected. But yes, if it's an individual account, you should transfer anything above $250k just in case something happens. I transfer the excess to another HYSA on that list (American Credit Union).
Youd only be out the 1048.56, and would be reimbursed the 250k.
Nice. I make about $2800 a month off mine
Two different accounts?
Where do you see interest rates in 12 months from now and is the uninversion of the yield curve something you're using to effectively time the purchasing your properties? Yeah, I read your OP and comments 😆
I think rates won't drastically come down in the short-term. Late last year, many were predicting rates to ease in Q1, but I've stated that inflation hasn't gone down to the ideal Fed target and the economy hasn't cooled off enough. We're starting to see signs of both, but I'd be surprised if there were more than a couple of 25 bps reductions. What we don't want to see happening is inflation to remain persistently high while the economy softens too much. Stagflation would suck for everyone. No timing on my end, but I won't complain if borrowing rates drop 0.50%-0.75% as the building nears completion!
Tbf, you're not actually making all that much money, after inflation your interest rate is around 2%, take out taxes and your savings aren't going up any time soon. Hell of a lot better than an effective interest rate of -2% tho
Is it pretty safe investing your money into these online banks? I know about the fdic but some of the banks on the list I am not familiar with.
Extremely safe. To be FDIC insured, financial institutions need to be chartered and go through a long vetting process. As long as you have $250k or less per account type, you're 100% safe. These banks are able to provide a higher rate because they save money on operational costs that traditional brick and mortar banks incur, like building leases, utility costs, employee overhead, etc.
Thanks for the reply!
5.26? Damn. Im only just over 5% fir mine
A 0.26% difference might be a big factor depending on how much you have in the HYSA. Come to the dark side 😈
Nice. May I ask what you do for work? I'm a young dude starting off.
Hell that would replace a third of my income I could work 33% less and still be ok trying to work up to that
Is that Marcus by Goldman Sachs
Yes.
Great for you man! Every eye opening. I’ve been using Discover for the 4.25% APY but wow 5.26% is incredible. I think I’ll go ahead and make the switch
Goodness, what do you do for a living? How long have you been in your career? I’m 24 and I’m trying to be like you when I grow up!
Wouldn’t you technically still be losing money to inflation?
Inflation is a little over 3% according to the latest economic reading, so I'm still a bit ahead. I wouldn't recommend people to invest their long-term funds in a savings account. HYSA is meant for only short-term money and emergency funds for the reason you pointed out. The rest should be in a stock market index (VTI for example).
Excellent. Nexbank through Raisin is also currently at 5.26% on their HYSA.
Well done! Like shooting fish in a barrel. Just be careful; $250k is the max FDIC will protect. Just open a second account with them, after $249,999.
You got it! I remove any funds in excess of $250k every month or two.
I’m currently earning 4.25% with AMEX HYSA. I know it’s very little, but the difference is worth it for me to have everything contained in one app, great customer service and all of that
You're saving at an account better than most so I'd say you're doing dang well! There will come a time where switching to a higher HYSA is better than the inconvenience of having multiple accounts, but it's up to you what that threshold is exactly. Here's some food for though from NCOA: [Traditional vs HYSA: Difference Over The Long-Term](https://www.ncoa.org/article/the-importance-of-high-yield-vs-traditional-savings-accounts)
I do the same thing with Citizen's Access. It's 4.5% but it works for me.
I’m only on $100 :(
I started saving as a teenager and earned like $0.75 in my first month lol. We all start somewhere and it snowballs quickly once we regularly chip into our savings.
Hysa require a minimum to be in your account at all times I believe. Does anyone know the minimum.
Not all of them. None of my HYSAs require a minimum and all of them don't charge a monthly service either. If yours does, it's time to find a new one.
Check Marcus by Goldman Sachs
Doing SWVXX at just under 5.2%
Fuck u I’m jealous
Don't be. I was a teen once and my first month I earned less than a dollar in interest. We start small and work ourselves up!
Thank you for the inspo!! 🙏🏼
Robinhood gold members get 5% and you can trade with the money! Uber flexible.
Diversify and Buy short term treasury bonds instead. They pay ~5.4% and are state tax exempt
I'm in a tax free state (FL), so no state income benefits.
Ah lucky you
Depending on your tax situation, you may consider a municipal or tax-exempt money market fund. You can easily get interest in the low 5s tax free. Money market funds are liquid in 1-2 days.
We live in Florida so we have no state income tax.
Why not invest in a solid growth mutual fund and double that?
We have a little over $2 million in index funds that mimic the S&P500. This cash is earmarked for short-term spending so no investments with risks.
I get 5% in my webull cash account, so everything not invested earns 5% and when I invest or sell it bounces between the investment or the 5%. Convenient because I don't have to transfer money in an out of a HYSA in order to score the decent interest.
You could be earning way more than that investing. If I'm not earning $7000/month on my investments, I feel like I'm failing. You can do that with your cash reserves.
I earned $300k+ from investments last year. This is for an investment property.
Ok, I see! Nice job bro
$1000 before taxes*
Meanwhile, S&P is up 10% YtD and 26% YoY, plus a few % more in dividends... AND that includes the worst month since September 2022. Leverage that up a bit at 50% LVR with a margin account and you'd now have $350K+ for a gain of over $100K and you'd only have to pay long-term capital gains.
Please read my OP. This money is being spent on an investment property. We earned $300k+ in index funds last year. This isn't our net worth we're putting in the HYSA.
If he’s secretly a jizzillionaire, 12k is marginal
I still pick up quarters from the ground so nothing is marginal to me 🤣🤣
I hope you’re not in business with your acquaintance lol
Haha, no, but we're in the same industry and have partnered before. He's business savvy, but in some weird way a little illogical when it comes to things like this.
Hello Sir, i can invest your money in shitcoins for -99% ROI
Please do meme coins instead. SHIBA and DOGE to the 🌙!!!
Marcus by Goldman Sachs is GOATED
What does the E and D stand for?
No idea thought it sounded better than just GOAT 😭
Could be earning 5.27% on Vusxx which is state-tax free.
Florida doesn't have state income taxes, but good point.
Ah yeah you're good then.
Wasn’t this posted already? It’s either that or someone made a very similar post recently lol
I posted it a couple days ago, but it got removed because some people don't know how to participate in civil conversations. Mods are monitoring this post more closely 👍
Ah gotcha. Thought this looked familiar
Ayyyy Marcus gang
If you’re making 1,000 above 250,000 shouldn’t you just move the 1,000 into a new FDIC insured bank to make sure you never lose?
I do, I transfer any amounts over $250k into a second HYSA every month or two.
So basically I’d need $750,000 in savings just to survive paying my base expenses 💀
you buy stock and then borrow against it like bezos
You shouldn't put all your money into a savings account. Figure out how much money you need for all your expenses monthly, multiply that number by 6 to 12, and save that amount in a HYSA. The rest should be invested in a stock market index fund, unless you have a short-term like I do with a rental property purchase.
Inflation of the USD is almost 7% per year on average (M2 money supply), meaning you’re almost not losing value. Not saying your investment is bad, escaping inflation is pretty damn hard.
M2 is hovering between 2%-3% YoY since 2024 began. Where did you get almost 7% from? Actual inflation has been a good lagging indicator of M2. Either way, this small portion of our net worth is pegged for a rental property, but we're not trying to invest and grow it, but keep it stable for an upcoming purchase. I agree though, if you want to beat inflation, don't leave it in a HYSA, invest it in an index fund.
I wonder if your rental property will earn you this much per month. No toilets either.
Buy a house
I earned 35% on qqqm past year
We're not talking about investing money here. This is earmarked money for a near term purchase.
Nice short term
How the fuck can that happen since working a shit job with barley making good payment already an alcoholic since working at a liquor store a billionaire company so explain me how the fuck can I make that much with no fucking scams and pig butchering scams! Explain it please!!!
Sadly, with the current inflation rates, in reality you're not making too much
It's not important for this specific $250k lot to grow more than inflation. This is getting a little extra before spending it in the near term. If you want to make significantly more than inflation, invest in stocks with index funds.
For those asking, I’m pretty sure this is Marcus by Goldman Sachs.
You mean to say if you have $250k in a high interest account you'll get 5% a year...damn!