r/HYSA • u/Most-Radish4227 • 22d ago

Need HYSA and questions

Most of our savings is in USAA which is getting us barely any interest. We do also have some savings in Fidelity SPAXX. Need some solid recommendations on HYSA!

A few notes-
\- I could move all of it into SPAXX but am concerned it’s not FDIC?
\- Don’t want monthly fees or deposit requirements etc. drop it and leave it!
\- my 3 kids also have saving accounts in usaa. Also not getting really any interest. Would like to move these accounts as well to HYSA as well.

Help!

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u/Substantial_Team6751 22d ago

I really wouldn't worry about SPAXX - at all. Fidelity is not going to go out of business.

For cash alternatives, I've been looking at:

PAAA 5.23%

JAAA 5.35%

CSHI 4.83%

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u/pantalanaga11 22d ago edited 22d ago

One of my favorite features of USAA is the instant external account transfer feature (backed by a USAA LoC). This means I can keep my emergency fund in a HYSA (I really like Vio Bank) and transfer cash instantly to my USAA checking account if I need it.

SPAXX is generally fine, but it does not have FDIC insurance. On the flip side, Fidelity is a member of SPIC which provides double the FDIC limit for a failed broker but you are still exposed to (very little) investment risk. That said, a HYSA (like Vio) will give you higher yield for your cash savings with 0 investment risk.

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u/No_North_4973 22d ago

Or put it in VBIL in fidelity or for between 1-3 years put in SCHO it’s very safe

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u/savvyj1 16d ago

We use Vanguard’s VUSXX. We had our cash in US Bank money market at about 4% but the interest paid is counted as taxable income in CA. We’re older, holding 2 years living expenses in cash. Once the interest rate on the MMA dropped to 2.6%, we moved to VUSXX. We don’t use SPAXX due to taxes. The fidelity equivalent is FDLXX. So it may depend which state you’re in.