You Need A HYSA (High Yield Savings Account)

You're missing out risk-free money.

I mean, as long as the banks don't go bankrupt, that is, which is unlikely.

You need to go dump whatever pile of cash you have lying around that's not meant to pay your monthly bills into a HYSA.

Now.

Why? And What's A HYSA?

A high-yield savings account (HYSA) offers several benefits compared to traditional savings accounts, which typically offer lower interest rates.

Here's 3 key advantages they have:

1. Competitive Interest Rates: High-yield savings accounts offer significantly higher interest rates compared to regular savings accounts. This means your money can grow at a faster rate over time. The interest you earn is usually compounded daily or monthly, helping your savings to accumulate more quickly.

2. Liquidity and Accessibility: High-yield savings accounts provide a safe and easily accessible place to park your money while still earning a competitive interest rate. You can withdraw your funds at any time without penalties, making it a flexible option for emergency savings or short-term financial goals.

3. FDIC Insurance: Most high-yield savings accounts are offered by banks and credit unions, which are typically insured by the Federal Deposit Insurance Corporation (FDIC) in the United States. This insurance ensures that your deposits are protected up to a certain limit (currently $250,000 per account holder) in case the financial institution encounters financial difficulties, providing a high level of security for your savings.

If you are in the 1% and have $250k in cash, then just open to different accounts so its all protected.

Why Am I Just Now Hearing About This?

As you may have noticed, your groceries, gas and pretty much anything outside of breathing is way more expensive than it was a year ago.

That's inflation at work for you.

To combat inflation, the government takes up interest rates which makes borrowing money more expensive.

However, this also allows banks to be able to offer higher returns in these accounts for banking with them.

For the past few decades, interest has been so low that these were barely worth looking into because you wouldn't make much more than a regular savings account.

But now with interest rates skyrocketing, they're offering up to 4.5% in some accounts.

That means for every $10,000 you put in there, you'll get $450 after 12 months.

I don't think I've made $450 in my checking account in the past 10 years combined.

Don't Go Buy A Ferrari Just Yet

You aren't going to get rich putting your money in a HYSA. 

That's not the point. 

The point is that it is a protected savings account that will get you WAY more money for having it sit in there versus sitting in a regular savings.

There is zero difference to you except how much money you make.

This is a great way to nullify some of the inflation we experience everyday without taking any big risks.

So scoop together whatever pile of cash you have, do a Google search for HYSA and choose one that works best for you.

At present, anything hovering around 4% is solid.

These rates WILL change so get it while the getting is good.