HYSA recommendations?

[hiltonisheaven]

how does one invest in such an instrument? is there a UST account sign up system?

I use Fidelity but can also use Vanguard.

 

[clonechemist]

just go get a 3 or 5 year myga and get 5%

How fluid is the myga?

We're just parking emergency fund cash, so we need to remain totally fluid with minimal delays, penalties etc. I also prefer to avoid a brokerage account because I'm not sure I'd have the discipline to keep this cash out of riskier positions.

 

[tigershoops31]

We set up an online Synchrony account for our kids savings accounts a few years back since it was over 100x higher interest than the local banks. We recently added our own savings account there too. It is currently 3.75%

 

[Pat]

With current rates, we should park some savings in a HYSA. Seeing rates around 3-4% advertised for online-only accounts.

Anyone have experience with an HYSA provider that you would recommend or avoid? Any tips or issues to watch out for or consider?

TIA

I do consulting work, so we keep a Discover account in case, I don’t know, a pandemic renders me suddenly unemployed. Rates across products are pretty similar. I will say this: when they were at 1%, we were losing purchasing power to inflation at about the same rate that we are now at 3%. These accounts are easily the best place to park cash, but they are a terrible investment.

 

[CoachHines3]

How fluid is the myga?

We're just parking emergency fund cash, so we need to remain totally fluid with minimal delays, penalties etc. I also prefer to avoid a brokerage account because I'm not sure I'd have the discipline to keep this cash out of riskier positions.

most mygas tie up your money for the guaranteed period (3, 5, 7 years) and allow anywhere between 5-10% penalty free withdrawals.

It’s a good place to park funds that you don’t intend to really use or need for that period of time and get that guaranteed rate.

There is currently a company that offers 5.40% for 5 years.

 

[SayMyName]

For my (liquid) emergency savings, I've been using MaxMyInterest.com for the past several years. They automatically move your balance to the highest-yielding online account every month.

For example, Ally is currently at 3.30% APY but UFB Direct is at 4.11%.

 

[ClonerJams]

Bump. Whats everyone getting on their HYSA these days? I moved most of my money to UFB and am getting 4.55% on their savings account

 

[cowgirl836]

Bump. Whats everyone getting on their HYSA these days? I moved most of my money to UFB and am getting 4.55% on their savings account

3.85 on citi accelerate savings. Well above mortgage and enough above bit of car loan that we'll let cash sit there vs pay ahead.

 

[SayMyName]

Last monthly "optimization" cycle thru Max My Interest has me right at 5%.

Was previously considering moving to a staggered 3-mo CD ladder, but at my current rate I'll probably just keep it liquid for now.

 

[baller21]

Ally’s current rates
3.6-savings
3.8-money market
4.75-no penalty CD

 

[cyfan92]

Please keep deposits under the FDIC limit if you are using a bank that pays well above the average rate of savings.. there is a reason they are paying higher rates and in the event of a run like Friday. You'll be screwed

 

[clonechemist]

Bump. Whats everyone getting on their HYSA these days? I moved most of my money to UFB and am getting 4.55% on their savings account

I went with Ally, so currently at 3.6%. I know rates are slightly higher elsewhere, but I wanted a bank that has good brokerage accounts too (Ally checks that box), and a good app, and good options for getting money in/out with little hassle. Ally’s been fine for me so far.

 

[Dr.bannedman]

ya, i need to look into this. 15k in traditional savings is doing NOTHING for me

 

[clonechemist]

how does one invest in such an instrument? is there a UST account sign up system?

If you’re thinking of US gov bonds, consider I bonds. Lots of info about them (just google). Current rate is 6.89%.

You can buy US gov bonds directly at ‘TreasuryDirect’. It’s super clunky and annoying to use compared to commercial sites, but I think it’s the only way to buy I bonds.

 

[clonechemist]

I do consulting work, so we keep a Discover account in case, I don’t know, a pandemic renders me suddenly unemployed. Rates across products are pretty similar. I will say this: when they were at 1%, we were losing purchasing power to inflation at about the same rate that we are now at 3%. These accounts are easily the best place to park cash, but they are a terrible investment.

Agree 100%, we only use it for our ‘emergency fund’, ie ~3 months worth of expenses in cash.

 

[BCClone]

I signed up for this the other day: Discover Bank 3.3% + bonus of $150/$200 for deposits of $15K/25K. Seemed like it had the fewest strings attached and I already have their credit card (no complaints).

My credit union (Summit in Madison, WI) is apparently too busy empire building to pay much of anything for deposits (0.03%).

That’s credit unions. They like to talk about their low loan rates, but if loan rates are low, you know what deposits will be like. You also have to factor in dividends with them. I have one that pays 1% in dividends.

 

[cycfan1]

If you’re thinking of US gov bonds, consider I bonds. Lots of info about them (just google). Current rate is 6.89%.

You can buy US gov bonds directly at ‘TreasuryDirect’. It’s super clunky and annoying to use compared to commercial sites, but I think it’s the only way to buy I bonds.

Do not buy Ibonds here.
You’re looking at 6 months at 6.89 percent where it likely resets to 2-3 percent. Add in 5 year holding period otherwise a 3 month penalty.
Buy Tbills instead.

 

[clonechemist]

Do not buy Ibonds here.
You’re looking at 6 months at 6.89 percent where it likely resets to 2-3 percent. Add in 5 year holding period otherwise a 3 month penalty.
Buy Tbills instead.

Time will tell… I’m betting the sticky high employment numbers mean inflation will remain high for at least 2 more months, and the new I bond rate determined in May 2023 will be significantly higher than 2-3 percent annualized.

I fully expect to cash out my recently purchased I bond before the 5 year mark when inflation tanks due to Fed action, and the I bond rate follows…. At that point, the 3 month interest penalty should be peanuts based on the I bond rate, and the only question will be whether 3 months of interest opportunity cost lost is outweighed by the interest premium I’m currently enjoying over T bills.

 

[pourcyne]

I bank locally because they give back to the community in terms of employment, funding local businesses and sponsoring local events. Seems more important to me than a fraction of a percent (which does or does not get eaten up by the fees some of the big boys charge), but that's just me and my rural thinking. Our local banks also provide free accounts for non-profits. Not sure you see that elsewhere, and one of the invisible "perks" of living out in these here Iowa sticks.

Your call where to bank, of course, but it's also wise not to put all your shekels in the same mattress.

 

[cycfan1]

Time will tell… I’m betting the sticky high employment numbers mean inflation will remain high for at least 2 more months, and the new I bond rate determined in May 2023 will be significantly higher than 2-3 percent annualized.

I fully expect to cash out my recently purchased I bond before the 5 year mark when inflation tanks due to Fed action, and the I bond rate follows…. At that point, the 3 month interest penalty should be peanuts based on the I bond rate, and the only question will be whether 3 months of interest opportunity cost lost is outweighed by the interest premium I’m currently enjoying over T bills.

4 of the 6 months for May have already been realized. I believe if the rate was reset today it would be 2.4% basis CPI data. Going to need a big inflation spike in next two months to do better than Tbills.

So you put 10k in today, you have 6 months at 3.4% annualized and 6 months at 1.2% annualized. So your at 4.6% with no penalty - to me no reason to do so with Tbills bringing 5%.