I want to open a HYSA but I don’t even know where to start. I don’t have a lot to contribute (~1k) but I figure anything is better than the .01% BofA offers me to have it in their savings account.
I’m wondering what bank would be the best bank to open a HYSA with and any general tips. Thank you!
Our answer:
If you’re looking to open a high-yield savings account (HYSA), you’re on the right track! Even if you don’t have a lot to contribute, it’s a smart move to seek out an account that will offer a higher interest rate than the meager .01% you may be earning in a traditional savings account at a big bank like BoA.
Note: As of 5/1/23, iBonds are only earning 4.30% for the next six months.
When it comes to choosing a bank for your HYSA, there are several factors to consider. Some key considerations include the interest rate offered, fees (if any), minimum deposit requirements, and any other account terms or restrictions.
To get started, it’s a good idea to do some research and compare HYSA options from various banks. Online banks, in particular, tend to offer some of the highest interest rates on HYSA accounts, and they may have lower fees and minimum deposit requirements than traditional brick-and-mortar banks.
Some popular online banks that offer HYSA accounts include Ally Bank, Marcus by Goldman Sachs, and Discover Bank. Each of these banks has its own set of account features and benefits, so it’s important to compare them carefully to determine which one aligns best with your needs and preferences.
In addition to choosing a bank, there are a few general tips to keep in mind when opening a HYSA. These include setting up automatic deposits (even small amounts add up over time!), monitoring your account regularly, and considering other ways to save and invest your money for long-term growth.
Overall, opening a HYSA can be a great way to earn more on your savings, even if you don’t have a lot to contribute upfront. By doing your research, comparing options, and following some general tips, you can find the right HYSA and start growing your savings today!
