HYSA

dizmo40

Just chill bro. You won, set aside some in a money market and a HYSA. Add some to your IRA, and HSA if eligible. Congratulations!

Luxferro

Most people don't even understand basic financial information. 5+ years ago I was one of them. For example I commented on a post in the NFL sub this week about someone claiming they could live off of $1M in an HYSA and make $40k per year. This post, and others like it, had lots of upvotes. But my comment about it being next to nothing after inflation got voted down.

Kind-Connection1284

Why don’t they put that cash in a HYSA, are they stupid? /s

URMomPaysFirMyCalls

At this rate I may have to sell my T Bills for a HYSA account that pays 7%

Artistic-Evening-669

HYSA ?? looking for recommendations.

Dr_Zoonotikstein

Great. Now put $101,105.61 in a HYSA and repeat with the next $700. Don't be a degen and give it all back.

webisticsmarketing1

you're still making 6% a year from HYSA and money market? which banks? or did I misunderstand you

Mental-Revenue-4213

Appreciate it I’m ahead of it that moneys getting parked in my HYSA I used the 800 to buy some longs and called it good for the year I’ll keep putting money in the buy and hold

SmallCapsOnly

How about a diversified portfolio? 7%-10% avg growth over 30 years is a guaranteed retirement. People are obsessed with chasing alpha and most of them end up worse off for it. They lose big, they develop loss aversion tendencies and they keep their money in a HYSA or CDs and then wonder why they don’t have enough to retire on. Value stocks are good, growth stocks are good. Putting all your eggs in one basket is a nightmare if you got the wrong basket or can’t stomach the volatility. Good luck champ.

Original_Reaction730

That’s exactly what I have About half is HYSA/money market. Earns about $125/week. Thought I was an idiot until last week

Dr_Zoonotikstein

Nope, not interested in a CFA nor qualified. What I've been doing is working well for me so far. It is not anything I would recommend to others though. I'd have to default to something very conservative and responsible, like "put it all in an appropriate TDF and a good portion in a HYSA". Incidentally, I do just that with most of my net worth. I'm only actively trading with \~220K, so I've already got the boring, safe stuff covered. Truth be told, I'm making wayyy more on my trading account though - again, said with a strongly emphasized "so far". I don't have any delusions, and the winds of fortune can turn against you at any time, sometimes violently.

DocWilly84

He’s up 0.68% YTD. My HYSA makes 3.2% at the moment. So nearly 5x return. And the fact that he’s up over $460,000 means his initial capital is massive. And by not allowing it to even sit in well diversified index funds, he’s missed out on millions in gains.

Mental-Revenue-4213

I can’t sit here and act like this was well thought out🤣A few plays were made yesterday I wanted some time to just let it sit and not be greedy. And look at some of the mags that are down I made some longs the rest will be withdrawn and put in HYSA for future use in my actual investments.

Paul_Robert_

Underperforming SPY: 😐 Underperforming a HYSA: 🫤 Getting outperformed by a guy who keeps posting about how his ass smells: 🫪

Original_Reaction730

Still sitting on like 30% HYSA/CDs/Bonds. Pulls in an about $125 week. That and cc go straight to the casino Can’t stand the idea of finishing a year in the red. Makes zero fucking sense.

dpatel211

I’d like to thank my local bank for having solid HYSA rates to offset my losses

PassableForAWombat

Yes. Typically if you’re above a certain range. Keeping emergency funds in a HYSA? Amazing. Full port? Ooooof

PassableForAWombat

When they say go cash, it means bonds and treasuries and defensive stocks lmao. Going flat cash is pretty much HYSA or nothing and should be used for injectibles in regards to financing.

markgriz

I have etrade for taxable account individual shares, schwab for HSA investments, so I can't compare them directly. I will say that etrade has obnoxious fees. $38 every time a ticker changes, a merger happens. Any kind of corporate action is going to cost you. I've paid hundreds of dollars over the years. I'm sure Schwab has similar fees but I don't know for sure. Etrade banking does offer above average interest. My capital one HYSA is at 3.3%, I think etrade is at 3.75

InvestingNerd2020

Schwab based on customer service alone. Add on good money market funds for emergency savings, a quality checking account, good Index mutual funds for retirement accounts, and fractional share investing for ETFs in a taxable brokerage account or retirement accounts. E-Trade has some nice features and products. Examples: Automatic ETF investing, good Index mutual funds for IRAs, good for option trading, and a good HYSA. However, they seem soulless without good customer service.

HipOut

AI growth can’t really be seen as similar to internet growth - it’s been quite different - way faster deployment and adoption. Definitely if someone is trying to pick individual winners in AI they should be cautious. Buy total world index funds, hold six months emergency fund in HYSA, stay the course, don’t listen to people who say it’s all over and the bubble popped and we are in a recession

Alternative-Yak171

No, I’ll keep my money in my HYSA. Better results

Objective-Light-9019

Up 2.78% YTD. That’s across stocks, crypto, prediction markets. Was up 5.3% yesterday. Might be HYSA time and chill.

WSB-mods-are-

Just send me back to precovid when I had a 4.5% HYSA and still beating inflation :(

kconfire

I'm gonna bet my left nut that neither party will hinder growth of the ai race because that's literally the only thing that's driving the US economy. Democrats will say nice things for people to hear and may act upon data center bans/restrictions or whatever they call it, but in the end the US CANNOT lose this ai race. It's a national competitive edge we cannot let go of. Fundamentally strong companies will survive, and rally again. I moved more out of my HYSA so I can buy the dip for the next few weeks. If Dems really ban ai buildout and don't want the ai, then they don't want the US economy to prosper and I guess I made a bad choice.

SOF1231

I know this probably won’t reach a lot of upvotes, will get views but anyways, I don’t know invest any money at all. I do enjoy this subreddit because I can learn a few things every now n then when I’m scrolling bored on here And judging by this guys post, I’m assuming this week or today a lot of people have been losing money or lost their money. I’m here to say folks I’m BROKE as fuck. I’m bout $3K in debt - not major for a lot but major for me, I only have my 2 incomes from my full time job and Amazon side hustle. I’m behind one car payment even though I’ve stayed on top of others successfully, behind on rent, my car has a few issues that needs money for it to be fixed. I’ve been broke and I’ve had money. I hope that this message reaches anyone who’s in the same boat as me or lost money in trading and what not. At the height of my earnings I had $11-12K in my savings but was too scared to invest into a HYSA, Roth IRA. I’m hoping to do that when I can secure another higher paying job where I can divide my money without stressing too much. If you’ve been up before this just a ridiculous earthquake you gotta wait for it to settle. The only aftershock will be you getting yourself back up. Have a good day ppl even tho majority of us eating shit sandwiches lately.

ZealousIdeal476

I'm getting 4.0% in a HYSA, just waiting for the dip of the dippity-dip-da-dip.

Admirable-Royal-7553

You don’t lose until you sell lmao. Wish I was a bit more liquid, but I lucked out with pushing with building my HYSA since July.

sentientshadeofgreen

I have multiple accounts so I can hyperfixate on the ones that aren't so bad. My HYSA paid me twenty bucks this week so I got that going for me.

Spacekingonly

The HYSA I had was sold to a different company and made a much lower rate, so I took it all out and put some in the S and P this week. Rip. (Most of it is in something that pays dividends, though, but still. ouch).

o2lsports

One year ago, I said goodbye to options. One month ago, I said goodbye to stocks and put everything in a HYSA. Today is so, so fun.

Consistent-Ball-937

Well it doesn't help that I'm lazy and I'd rather have all my paychecks go to a HYSA DD instead of going to a low rate checking then move to brokerage then move into MM

PurpleCableNetworker

This. Am I bummed about today? Yes. But late last year/early this year I put in a small amount (small by this subs standards, large by “non investor folks” standards). But I’m still up about 5% compared to when I put it in. Thats better than the 3.5% my high yield was offering With that said, I do index ETF’s. I bailed on my sector funds earlier this year when the log chart went parabolic (when it goes parabolic - a crash will happen just for profit taking… it’s a story as old as time with Crypto). So yeah, I’m down a solid 4% today. But within a year (or two) we’ll likely be up by another 8% or so. Still better return than my HYSA.

EdoTensei10

you would've made more money in a HYSA and treasuries this year

visionarymind

Most HYSA have outperformed this sub 🍵😌

xiaodown

Yeah my concern isn’t the safety of the investment as a conceptual thing, it’s more that my money in my HYSA is fdic insured to $250k (or $500k for joint accounts), but to buy SGOV i would have to put the money into a brokerage where it (presumably) isn’t FDIC insured. It’s probably an academic distinction, but that’s what I was getting at.

MaddRamm

SGOV all day long. Same or higher rates as a HYSA and don’t have to worry about any crazy limitations or bank solvency/FDIC/etc. my CU only pays the HYSA up to $25k. So I’ve started putting excess into Happen (formerly Lending Club).

jb59913

HYSA

Hashtagworried

I’m curious as I’ve just started to look into SGOV. Why even bother with HYSA given that SGOV has better tax advantages.

Snahhhgurrrr

GIC, HYSA, [CASH.to](http://CASH.to)

Slight_Taro7300

SGOV is an ETF that invests in ultra-short 0-3mo US Bonds, which are exempt from paying state income taxes unlike HYSA interest.

Ant010101

How so? Wanting to save 2.5k a month for the year and a half and i already maxed out my 6mo emergency savings HYSA :/

theblindness

200K is enough where the net yield after taxes matters. US treasury bills, short term notes, and floating rate notes will have a better net yield than an HYSA, and more preferably tax treatment in states with income tax. For example, in California the difference between a 52W T-Bill and a Capital One HYSA could be up to 1.6%, which amounts to about $3K/year on $200K. Figure out how much of it would be needed for different durations, split the money into piles for each duration, and use that money to buy US treasuries matching the duration.

saltyhasp

Into a money market fund or HYSA. If the rates were better and I know when I needed it, I might buy a CD or Bond with a suitable maturity. I'd base the my decision on after tax interest rate, and credit quality I wanted. Hint Vanguard has pretty good mutual fund rates. They also have a bank sweep HYSA for FDIC insurance of larger balances, though you may be able to find better HYSA deals.

Slight_Taro7300

SGOV may be more tax efficient than HYSA depending on your state income tax.

smashmouthallstar420

Buy the new 5.5% i-bonds to your maximum and then HYSA the rest

Nelvalhil

2 yrs is HYSA, yes.

officialcrimsonchin

Slam dunk it into my HYSA

CoatAlternative1771

I meant a HYSA, I just did my election for health care lol.

WhichReception9597

Index funds long term, emergency fund in HYSA.

Prestigious_Way_738

Yall realize you can get 6% HYSA with X Money right now? You don't need to suffer with this market.

InvestigatorThat5062

Haha I love your ingredients comparison. Makes sense. I didn’t even really think about my brokerage having a “purpose” except for me using Fidelity for FDLXX / SGOV HYSA and my other brokerage is just built into this account as well. So maybe look at removing VGT, adding more SGOV or something else that’s stable? To me, 7-10 years seemed like a long time but yeah you’re right with how long the market can take to bounce back… 7-10 isn’t that much haha

DistributionBroad173

When I started investing I had to pay a $75 commission to buy and a $75 commission to sell. Right off the bat, I was down $150. If I bought a stock at $10, it needed to go to $12 for me to have a profit. You are buying stuff at zero expenses and zero commissions. The smartest thing you have done is you have started and you are in Fidelity Zero Expense funds. Most of us old farts dollar cost averaged into our 401k/403b/457 plans. We bought high, we bought low. I have invested through the crashes of 1987, 2002, 2008, and 2022. The worst being the 2008 crash. Bond funds are fallacies on their safety, Everyone who bought bond funds from 2018 - 2022 was buying funds paying 1% interest. They do not cushion the blow with income. We had three regional banks fail in 2023, because they owned a whole bunch of 1% bonds, and when rates started climbing, no one wanted their bonds. Then, bank customers wanted cash and the bank had to sell 1% bonds when people could buy a 3% bond from the US government, the banks failed. Charles Schwab owned $40,000,000,000 in unrealized losses on 1% bonds and was close to failing, but they had people constantly sending them money instead of asking for money, Charles Schwab weathered the storm. My advice, stay away from bond funds, but you can buy individual bonds. Buying a bond at 5% is a lot better than 1%. But, an HYSA is paying you 3.8% or so, and your cash is liquid and not locked up. I will buy one bond if yields get to 8%, I will buy more when yields get to 9%, I will back up the truck when yields get to 10% or higher. The last time bonds were at 10% was 1988, I think. In 1991, I came to the conclusion to never own any fund that owned bonds. Any fund that owned bonds in our 401ks or IRAs, was sold. The money all went into the S&P 500 Index. We retired in 2023, and that decision worked out very well for us.

Important-Swim3873

lol fucking orange pos literally everything is outperformign stocks this year. yugioh cards, gold, even fucking HYSA. who would of thought that reatrded ass people would pick a fuckingclown

Important-Swim3873

https://preview.redd.it/d7vyoo3rs8zh1.png?width=698&format=png&auto=webp&s=5c15dbb153568156bc08fbffa355170d96429e41 dang people imvested in HYSA outperformed us on a 6 month basis

good4y0u

Fidelity is generally the best. Also, take advantage of their high-yield money market (like a checking + HYSA) for everyday use, has a debit card.

ydw1988913

I have a Lambo on agreed value policy, and it's been appreciating, beating HYSA I'd say

nicolas_06

You should not invest whatever money you might need before 10-20 years. If it's for emergencies, stick it to HYSA. You don't want that when you need it because these say a crisis and a market crash and you lost your job that the money is gone. Having a shared pool for emergency or investment look cool but this can really create issues as if 2 persons have an emergency in a short timeframe or whatever the second one might get nothing and be resentful. The notion of emergency may vary from person to person. It might also be that some people end up always putting more while some other end up always withdrawing more. And for investment it's a bit of the same. When do you agree you can withdraw what was invested ? Who own what ? How does it works ? What if one withdraw early, get less growth and another one keep it longer and get more growth ? What if the investment strategy perform badly and was decided by somebody else ? All that is at a big risk. If really you want to do this, I think you'll want a professional to do the management and investment for the family as they will be able to do all the accounting and serve as a shield to defuse/reduce family drama around that money. So you need a CPA and financial advisor... And the best is most likely that each member has his own emergency fund + his own investments. On top you'll be able to better leverage your country laws to help you invest. Like if you put in a 401K by your name you get better taxes but it doesn't work well if it is not only your money.

Muted-Woodpecker-469

I have considerably less but just watching dividends and the HYSA payouts grow as I do nothing is something else. To be able to do it at a larger scale as some don’t even want to try makes me assume maybe op gambled a bit to get his riches. They know nothing else but to keep on going for the homeruns. No one wants singles or bunts. 

jarredknowledge

Yea probably gonna roll my emergency fund in these. Why not make an extra 2% vs a HYSA

GreedyPomegranate391

The penalty is also only for the first 5 years I think. I've put 1/3 of my emergency fund there, it was my entire emergency fund back then. The rest I keep in HYSA now.

Vlisa

most people should invest in VOO and chill. I would never tell my close friends to do the shit I do lol. I wish they would put their extra cash into SPY instead of leaving in in a HYSA.

Spacey_G

It sounds like I made an incorrect assumption that your after tax investments were intended to fund shorter term expenses in retirement during a bridge period before pre-tax money was accessible, with bonds meant to reduce SORR. This is a very common use-case for a taxable brokerage account, and an investor who plans for a situation like that would generally have a large enough balance in both account types to run the rebalancing scheme I described. If you're nowhere near retirement and instead saving after-tax money for some large expense like a house purchase, it makes a lot of sense to just stash the money in stable places like a HYSA or bonds with duration matched to your expected need for the cash and to do so in after-tax accounts.

Crayshack

Depends on your expected timeline for when you need the funds. If you are looking at long-term investments (20+ years), you're probably fine leaving it mostly in index funds to ride the waves of the market (the Boglehead approach). If you are looking at something more mid-term (~10 years), then diversify into things outside of the tech sector and less likely to drop with a general market crash (not mid caps, but certain commodities and long-term bonds/CDs, depending on the rates you find). If you are looking at something short-term (<5 years), you should be in HYSA or some other sort of guaranteed return that won't care at all what the market is doing. For me, my IRA and 401(k) are mostly in market index funds which will probably take a bit of a hit with a market correction, but it's not worth trying to time that correction and I get more out of just letting it ride. Meanwhile, my non-retirement investments (likely will be using much of it 5-10 years from now) are mostly in CDs and a Federal Bond index fund with just a little bit in stock index funds. My return on the latter account is much lower than my retirement accounts, but it's also more stable and should be able to weather a poorly timed market crash much better.

WAFL4242

Part of me is actually saying my 4% HYSA is good enough! Part of me is looking at it sitting there going 'what if I just double down'.........

SukhshantiOm

I would be chill parking that in a HYSA and getting $400k a year doing nothing, I say that now, but I've never had this kind of money

TheMallard1

*Laughs in HYSA*

GaylrdFocker

>grows above inflation but has close-to-zero chances to ***EVER*** be in the red No such thing. If your timeline is more than 5 years then Index funds. VT or VTI and chill. You gambled with individual stocks. If less than 5 years a HYSA or CD. They will be pretty even to inflation, but will lose no money.

Priority_Bright

Sounds like you're going to be putting your money in a HYSA or bonds. Best of luck.

rewgs

Stocks, bonds, HYSA/CDs, in that order.

aayush-goenka

Right. Good question. There is a theoretical answer and then there is a practical answer. Ally online says 3.2%, so you may want to check: [https://www.ally.com/bank/view-rates/](https://www.ally.com/bank/view-rates/) So, Ally gives you 3.2%. on a 10,000 savings amount that would be $320 per year in interest. This $320, is not yours. You would pay tax on it. Let say you are in 50-100k income bracket in California (Single filer). That $320, after taxes would net you \~$224. Now, if you were to do the same for SGOV, you would have received 3.99% in current rates i.e. $399. After taxes, that would be \~$310. Note: SGOV earnings dont get state taxed (\~95% of it). So net net, you end up coming out ahead with SGOV \~$86. May not seem like a large number for most people. Two things will change it even more: 1. Do you live in an state with income tax? 2. How much do you earn on your HYSA account. I built a free tool for this, so you can compare and figure out where to put your money. [https://sgovvshysa.com/](https://sgovvshysa.com/)

overitallofittoo

I hope it's not really in a bank. Unless it's a HYSA or something.

Swred1100

HYSA for simplicity

Playful-Glove8918

First, if you have an advisor why aren't they helping you with a plan? Second, when you say rainy day is this your emergency fund? If it is I would not out your emergency fund at risk. Put 6 months of expenses in a HYSA, then invest the remainder in a bond ladder rather than bond funds.

oravecz

I retired last year, and I have a short-, medium-, and long term bucket - roughly equal to 2, 8 and 8+ buckets of annual living expenses. My 2 year bucket is bond equities and HYSA. My long bucket is primarily VTI. My medium bucket is a medium-conservative mix of index funds. I currently moved about half of that to PFSO to hedge against an AI bubble pop event. I plan on evaluating this every year. I only expect to maintain it for one year.

Stonk_Trader69420

I love rate hikes, makes my HYSA and CDs more money, as well as my money market account

Money-Effective7189

I take it your TSP "thrift savings plan" is a pension? Is this guaranteed and is it a defined benefit? Will it cover your cost of living in retirement? If so your in a much better place because your retirement accounts may not need to be accessed right away. Do you get to chose investment options inside your TSP, if so look at 40% stocks / 60% bonds and government securities. This can be a target date fund or you can pick the funds to make this up. You can get help from your plan administrator on what funds oul meet that mix. Your 40 and all your money is in a brokerage account and two mini bonds managed by a Financial Advisor with 13% losses. I would ask why your taking losses and so conservative and your so young. Even if you plan to retire at 55, you have 15 years of potential growth years and you can invest in a mix moderetly conservative funds that would have positive gains and won't lose you 13%. You may want to consider a new advisor, or take your investments over yourself. It sounds like you have a significant chunk in a brokerage account alrrady. An option is to roll the bonds over to your brokerage and then rebalance them, chosing better investments options. Your brokerage account should offer advisor help, look into that as an option. Look to see what your emergency fund is making most HYSA should make between 3 and 4%. Consider money market funds and CDs if they offer better rates. Check k with your brokerage 1st. At your age look at holding the following portfolio % which are consistent for your age I based the example off a $100,000 portfolio. VTI Total U.S. stock market $35,000 / 35% VXUS International stocks $15,000/15% SGOV Short-term Treasury bills $35,000 /35% VGIT Intermediate-term Treasuries $10,000/10% Cash Liquidity reserve $5,000/5% Hold 6 months of income in your emergency fund. If that is to much do 6 months of expenses. Most of thier HYSA pay 3-3.5% which is a good positive yield. Remember this is not advice, do your research and due diligence before investing. Good luck

Celcius_87

HYSA

TScottW

My emergency fund is in a HYSA. I need to be able to get to it in an emergency. Currently 4.5% but will revert to 3.5%ish in 60 days. (My parents used my referral link and we both gained an extra 1% for 90 days)

TwitchyButtockCheeks

HYSA. SGOV. Recently my bank just offered a 10 month CD at 5% so I’m dumping some there too.

Longjumping-Nature70

I am SELLING the bond funds. Take the loss. Do not fall in the sunken cost fallacy trap.(look it up) You have learned that bond funds are terrible investments. Especially when rates were low low. No point in beating you up anymore than that. My rainy day funds have almost always been in stocks or stock mutual funds. Only within the past three years have I actually kept cash in an HYSA. If you can stomach a correction or a crash, equities win in the long term. I am SELLING the bond funds. Take the loss. Do not fall in the sunk cost fallacy. Obviously, since you have not touched this money in 7 years, this is money you do not need. You are nearing 50, you have a TSP, you probably have a pension. I hope the majority of your TSP is in the C Fund. You can take on risk. Open an account at Fidelity. Invest in FNILX, their Zero Expense Fund that is the S&P 500 or invest in SCHD which is the dividend equity fund. Both are safe, but if the market crashes they will crash. Both do pay dividends. If the market goes up, they go up. To make you feel bad, if you would have invested in the S&P 500 or SCHD seven years ago, your money in that account would have doubled.

BugHistorical1614

Wealthfront HYSA & MYGA 4yr ladder (5.15% ave yield, over 59.5yo and no tax penalty for closing out, taxes deferred until funds taken)

Flat_Cartoonist_5668

Bro you are cooked! With this sound critical thinking you will never make money even investing. Just buy bonds or easier HYSA You thought they are shipping the jobs to india when the buyout includes India too? "The software maker announced a new voluntary exit offer for certain workers in the U.S., Canada, India and the United Kingdom at its experience level of 70 or below"

theblindness

Yes, there are better options for your cash position. Please understand where the yield of HYSA or money market account comes from: ultra short government debt, including short term US Treasury bills and overnight repurchase agreements (aka repos). These are affected by the federal benchmark rates set by the Federal Reserve Bank of NY, aka the risk-free rate. When you put money into a HYSA, the bank is automatically buying T-bills and repos, which yield interest roughly equal to the risk-free rate, and the bank takes a small margin, usually about 0.5% off the top to cover overhead expenses, leaving you with a savings interest rate of about 0.50-0.75% below the Federal Reserve benchmark rates. Sometimes a smaller portion of the money that banks take in will be allocated towards other government debt with a slightly higher yield to increase the savings interest rate, but in order to achieve high liquidity, most of the money will be in T-bills and repos. This is a bit easier to see with money market funds, which are more transparent about which securities they invest in and they directly state what percent is taken out for expenses. All HYSA accounts at online banks work this way, whether it’s Ally, AmEx, Capital One, etc. Just to clarify some terms, a money market fund, money market account, and high yield savings account, are all different flavors for the same type of thing, with slightly different structures. A government money market fund is structured as a mutual fund bought through a brokerage, and is the most transparent since they publish a prospectus and quarterly reporting. A money market account functions like a savings account at a bank, and is less transparent, but is basically using the same engine under the hood. And a HYSA is basically equivalent to a money market account, completely opaque. Of the three, the money market *fund* version may be partially tax exempt, depending on what securities it holds and in what proportion. For example, the US T-Bills portion may be exempt from state income tax, and some types of municipal government bonds (aka muni’s) may be exempt from federal and/or state income tax. The money market *account* and HYSA do not disclose the underlying securities, so the interest is fully taxable income. So the first step up form an HYSA would be a money market fund. And depending on your income level, you might prefer a fund that has a higher portion of US Treasury bills or municipal bonds to optimize your net yield after taxes. But you can actually do one better by buying T-Bills or munis directly via a brokerage account. Bonds must be sold on the secondary market before cash can be withdrawn, so they are slightly less liquid than money market funds. Funds must be liquidated during trading days, making them less liquid than the options structured as accounts. There are websites you can use to find savings vehicles like HYSA, money market accounts, CDs, T-Bills, etc, check their effective net yield after taxes, and compare. To balance the need for liquidity in an emergency, with the desire for the highest possible yield on money that would otherwise be sitting idle, you can combine multiple accounts in a tiered strategy that matches need for liquidity to the portions of your emergency fund allocated for different objectives. For example of multiple tiers: \- current month of bills in checking (fully liquid) \- next month of bills in HYSA (a single bank transfer away) \- insurance deductibles also in HYSA \- annual insurance Out of Pocket Maximum in a money market fund (higher interest rate, T+1 day liquidity) \- a month or so of expenses, also in a money market fund. \- emergency reserves for more than a month or so out in short-term T-bills and/or a bond ladder or CD ladder. To make a more specific example, suppose someone has a monthly expenses burn rate of $2,000/month, has a HDHP with a $1750 deductible, $10,000 annual out of pocket maximum, no car, and they want to have a 12-month runway in case of loss of income. They might keep $28-38K of cash in the following allocation: \- $2,000-4,000 in checking earning zero interest, which is fine for the cash buffer of monthly cash flow since that cash doesn’t sit still for long \- $1750-$10,000 in HYSA or money market funds earning roughly the federal benchmark rate, just barely keeping up with inflation, and ready to deploy within 1-2 business days in case of emergency \- $24,000 in emergency reserves in the form of a T-Bill ladder with a different $2,000 rung maturing and auto rolling each month, able to protect against loss of monthly income with a 12 month runway, earning very slightly more than the rate of inflation

shaved_furcoat89

This is a great point ☝️ Check Nerd Wallet's October listing for best savings account bank bonuses and see if any are HYSA.

biophazer242

I use etrade. They give me 3.75 right now. I deposit funds directly into the checking account on etrade which I use for my regular bills and then I move the cash into the HYSA. If I choose to use the funds for a trade the money transfers instantly over to my brokerage and if I need them to pay a bill I just move it right back to checking.

reserved_seating

I personally like a money market account since you can pay from it where a HYSA you traditionally cannot. Earning interest on your debit account funds is a nice perk.

Negrom

Someone already mentioned it, but +1 SGOV. Likely having another rate increase here soon, and is already at or above most HYSA for returns. As a big added bonus, it’s not liable to state income tax like HYSA’s are (assuming you’re in a state with income tax). My wife and I maintain a small $5k liquid cash pool in our Amex HYSA, and then keep the entirety of our savings/emergency fund in SGOV.

Inevitable_Ad6868

I never liked the name HYSA when it’s paying less than the very safest government MM funds. High compared to zero but literally lower than any other actual investment.

DaemonTargaryen2024

CapitalOne, Marcus, Ally are all good. AMEX doesn't jump off the page as having competitive rates, but if it's good (and I have to assume FDIC insured) then go for it. A money market fund in a brokerage account might have slightly higher yields than a HYSA. It's virtually just as safe, but is maybe 1-2 days slower in accessing funds than a HYSA.

Fauked

If you invest 10k per year correctly let it compound annually via stocks, ETFs and HYSA etc you'll be good. But 15% is stupid high for long term unless the market just keeps going up forever without correction.

diu7nei

never heard of this. can you point to an example HYSA account (let's say with a major bank) that has this upper limit?

URMomPaysFirMyCalls

The market always rips up the last couple days of the month while HYSA guys are trying to get the entire month of interest gains. Don’t ask me how I know.

Nukemind

Same. Born in a mobile home. Now a lawyer. I keep about 20k in my HYSA and everything else gets shoveled into the market. Now I have seen three draw downs and my response is always the same- keep shoveling in. I actually got a second job (full time tutoring) while allows me to shovel even more in with the hope of retiring early. Of course if we have a Dot Com or a 2008... I will DCA down but that willl be pushed out lol.

Sensitive-Exam649

dividned investing doesn't require a lot of captial to get started. Everyone just makes regular monthly deposits into the funds they want to invest in. For growth investing 401K or Roth accounts are great for grwoth. with VOO and VXUS or you could gowth with just VT. You don't what to invest in growth and then sell the growth toff in a taxable account and then reinvest inn dividneds. Because you will pay a lot in taxes when you'll the growth that is why many use 401K or Roth because the is no tax from selling in these account. Butyou cannot withdrawal money until age 60. In addition to starting the above you Need to exablish 6 most emergency cash reserve HYSA will work fine. But a money market fund in a taxable brokerage account will also work. If you cash reserve exceeds 6 months you should invest excess money Anything more the 6 month will do better if it is invested. You can deposit that money in a Roth to avoid taxes or you could invest it in the taxable brokerage Now many use gowth index funds in the taxable as simply an asset you can sell if you need more than 6 moths of cash. I howeverI prefer investing the excess in dividned funds. The cas emergency fund is great but it is limited to 6 months. If you are unemployed for more than 6 months that is a problem. SPIQ or QQQI are good sdidivndd funds o add. invest the dividned and add more money whenever you can Both have a high yield and are tax efficient. Oryou can turn off dividned reinvestment so that the money goes into your money market cash emergency fund. So the dividends help maintain your cash emergency fund and you can reinvest excess cash into the dividned fund. One time you will gradually build up emergency dividend fund that can replace or supplement your cash emergency fund. Ther is no limit as to how much cash you can get from the cash emergency fund.

PassableForAWombat

I filtered in a little at 5.1, just a HYSA with backing there. Rest is waiting in TLT/cash now.

AnimaLepton

About 20% between HYSA and Ibonds. I'm technically leaving some money on the table, but I'm fine with it. I want the cash flexibility to be able to take a sabbatical, down payment for a house, replace a car, and support my parents in case I lose my job. Staying employed and investing consistently is going to be the most important thing, so the mental confidence and strength I get from having that cash position is worth it to me. No traditional bonds or bond index fund

GreedyPomegranate391

Best move I made so far is to sell 1/3 of my AMD at $615, save some of the proceeds in my HYSA for taxes and expenses in the upcoming year, and put the rest all in ELF, CELH, MCD, AXP this year lol those stocks are doing well. I also put some in TQQQ and that's down, but I can hold that. And I believe AMD still has a long way to go, so holding it until $800 at least.

summersalt99

It would certainly hurt my portfolio, but I keep around 1.5 years of cash in a HYSA. I would expect I would still have my job and wouldn't need to touch this, as my expenses are lower than my income and in my mid-30's I'm not currently using my portfolio to fund my lifestyle.

Syndicate_Corp

It's not 4% returns though, it's 4% interest yield to pace inflation. You must also factor in taxation, as HYSA is subject to standard income tax. So really, you're getting <0.1-0.2% "return" on the premium between yield and inflation after tax.