Looking to save money? 4 High Yield Savings Accounts you should check out!
Let’s talk high yield savings accounts (HYSAs).
If you have an emergency fund, you are already ahead of the game. Check out this article that states only 44% of Americans can cover a $1,000 emergency expense from their savings. An emergency or rainy day fund is just what it sounds like: money set aside for unforeseen costly circumstances. Think car or home repairs, medical emergencies, pet injuries - you get the picture. These things can happen to anyone, so we should all prepare for them.
You’ll find that the more prepared you are, the less emergencies you will experience! So what should you do? First, aim to have $1,000 set aside. Ideally, you will have 3-6 months of expenses saved in an emergency fund. Some sources say to save even more depending on certain circumstances, such as family size, income level and cost of living. If you were to lose your job, how long might you be searching for another one? The goal is to be able to stay afloat and cover necessities without going into debt. You want to be able to support yourself (and your family) while you search for a job you love, rather than settle for something that pays the bills. Checkout bankrate for more on how to pin down the amount to save that's right for you!
If you don’t have any money set aside, then $1,000 can seem like a lot. Start low and go slow. Automate savings so you don’t have to think about it! Little by little, start to pay yourself first, and your future self with thank you. Use a HYSA so the money you set aside can earn interest.
At the time this post is being published, HYSAs are paying around 3.75-5% interest; compared to traditional savings accounts that often pay less than 1%. Neither of these rates outpace inflation, but this money is meant to be easy to access in a pinch! And 3.75-5% is certainly better than sitting under your mattress where it's NOT earning interest, AND at risk of being damaged, lost or stolen!
Let’s look at some HYSAs to consider:
- Ally (3.75% APY)
- American Express (3.9% APY)
- Capital One (3.75% APY)
- Discover (3.9% APY)
There is no cost to open an account with any of these banks, and they all offer at least 3.75% annual percentage yield (APY). All are members of the Federal Deposit Insurance Corporation (FDIC), which protects your bank deposits up to $250,000. At first glance, many HYSAs appear to be the same, but shop around before deciding which one or more to do banking with. Some banks offer bonuses for first time customers or setting up direct deposits. Other features or products may be available that could be the deciding factors for which bank(s) would be the best fit for your needs. Some offer “buckets” to have multiple savings funds. You may also want or need a checking account, or the ability to use ATMs or write checks. Checkout nerdwallet if you're interested in seeing even more options and comparison charts.
Do you have an emergency fund? Who do you do banking with? Likes, dislikes? Let me know in the comments!
Do you have other savings funds? If so, what are you saving for?
If you don’t have an emergency fund, then start one. It’s free! Then set up automated transfers to take the thinking out of saving. Consider it a small act of service or labor of love for your future self.
**This post does not contain affiliate links, nor is it sponsored. I do personal banking with all of the aforementioned banks.
Ally is increasing its APY from 3.3 - 3.4% effective 2/1/2023! Most banks tend to offer similar rates to remain competitive, so expect others to follow suit if they're not already offering a higher rate :)
ReplyDeleteAmerican Express is also increasing its APY to 3.4% as of 2/8/2023!
ReplyDeleteDiscover has also increased its APY to 3.4%.
ReplyDeleteAmerican Express is increasing its APY to 3.5%!
ReplyDeleteDiscover is increasing its APY to 3.5%.
ReplyDeleteAlly Bank is increasing the APY for its HYSA to 3.60% effective 03/11/2023.
ReplyDeleteAmEx increasing to 3.75%!
ReplyDeleteDiscover APY 3.60%
ReplyDelete