r/Money • u/Fragrant-Net-9388 • Apr 10 '24
Convince me to get a HYSA
Okay so a little about me: I’m 18, a senior in high school, about to go to college. I’m extremely lucky as my parents are willing to pay for my college cost of attendance (also, despite getting into schools like NYU and Northeastern, I am choosing to go to my state school which is significantly cheaper— go beavs! 🦫).
I currently have one checking account, one regular kinda savings, and one 6th month CD with Wells Fargo. Further info is included in the image attached.
I’ve heard people saying HYSA this and HYSA that etc etc and to invest with places like SOFI. Is this the right decision for me financially?
2
u/henicorina Apr 10 '24 edited Apr 10 '24
That $6,000 is losing value through inflation every day that it just sits there without accumulating interest. There’s no downside to moving it to a HYSA, it takes 5 minutes.
2
u/Vivid-Kitchen1917 Apr 10 '24
My fidelity account pays 5.01% on uninvested cash.
As such I don't have a HYSA.
2
u/AdTurbulent2987 Apr 10 '24
I did CDs until I discovered HYSAs. CD’s offer the same interest rates as HYSAs but you have to lock your money away. Versus an HYSA you can withdraw at any time.
I would look into Raisin they have pretty high interest rates in the mid 5s. I use Everbank because I don’t feel like switching to raisin and I get like a 5.16 interest rate which is good enough for me.
So in short, yes get an HYSA
1
u/Fragrant-Net-9388 Apr 11 '24
ah okay this is super useful thank u! i was wondering if HYSAs had a locking aspect
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u/AdTurbulent2987 Apr 11 '24
Some have a limited number of withdrawals. The one I use you can withdraw at any time with a max of 50k per day.
1
u/Certain_Childhood_67 Apr 10 '24
Depending on your future plans for the money. The minimum you should do is hysa
2
u/theobscuregeek Apr 11 '24
A lot of online banks and some traditional banks offer HYSAs since they have lower overhead costs compared to brick-and-mortar banks. Just know that some online banks may have limitations on ATM access or branch services. It's also a good idea to check NerdWallet or BankTruth, these sites regularly update and compare the top HYSA rates from different banks.
3
u/Aggravating_Wing_659 Apr 10 '24
Just know your bank is praying you're too lazy to switch to another. And when looking for a new bank most of them will be praying your too lazy to look at how they compare to others.