Make Your Money Work for You!

High Yield Savings Account – HYSA

There are a lot of references made in the media to high yield savings accounts (HYSA).  The accounts operate very similar or the same as checking or savings account.  The money on deposit earns interest paid monthly.  Check around as different places offer differing rates and have different restrictions.

If you have money sitting in a savings account at the bank only earning 1% you are losing money each day. First, check with the bank you are currently using to determine if they offer a HYSA and what they would offer you to keep your money at that institution.  Then check other institutions or just Google HYSA current yields.  You will be given information showing the institutions with the highest rates available at the time of your inquiry or within a few days.  Carefully read the restrictions regarding the account.  You want to know how it compares to your current account and the rate it pays.

Here is an example of what I found today, on October 4th, 2023.  I searched for HYSA and the first entry was from NerdWallet.com.  It showed a list of institutions and the current rates they are offering.  Upgrade Premier Savings was offering the highest 5.07% so I will use this in my example listed below.  They require a minimum balance of $1,000 and are FDIC insured.

Account Balance	Rate	Monthly rate	Interest earned	Ending balance
$10,000	5.07%	.057/12=.00475	47.50	$10,047.50
$10,047.50	5.07%		47.73	$10095.23
$10,095.23	5.07%		47.95	$10,143.18
$10,143.18	5.07%		48.18	$10,191.36
$10,191.36	5.07%		48.41	$10,239.77

As you can see, $10,000 grew to $10,239 in 5 months at 5.07%.

Here are the figures at 1%, which is what most institutions offer on their regular checking or savings accounts.

Account Balance	Rate	Monthly Rate	Interest Earned	Ending Balance
$10,000	1%	.01/12=.00083333	$8.33	$10,008.33
$10,008.33			8.34	$10,016.67
$10,016.67			8.35	$10,025.02
$10,025.02			8.35	$10,033.37
$10,033.37			8.36	$10,041.73

Depositing money in a HYSA, per this example, nets $198.04 more in interest income over the same amount of time.

Take the time to investigate and find a suitable HYSA.  It will help you earn more money.