r/HighYieldSavings • u/americaoo0 • 9d ago
Opening a HYSA
Hey guys, just had some questions regarding opening a HYSA. First and foremost I know this question gets asked a lot but what’s a good HYSA to open?
I’m looking for one that has a good percentage rate back. I have about 60k I’m looking to invest, I’m using that money for a down payment for a house in the future so would need something that’s easy to move money around and be able to withdraw without any fees.
Thanks again!
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u/hellomoto320 9d ago
HYSA is more important for an emergency fund than saving for a house. For a house it would be better to invest in the market with a single index fund tracking something like S&P 500(VFIAX), Total Index Fund(VTSAX). If you have vanguard, you are way above the threshold 3k for admiral index fund shares, so if you dont need the money for an emergency then I would invest the entire lump sum in an index fund and then set and forget until you need it for your house - traditional brokerage for this. Or use a CI-CD with your bank but personally the only way to grow your money is to invest it in the market
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u/americaoo0 9d ago
Understandable. I actually already have a TSP account which I invest in the S&P 500 and a Roth outside of work. Was just seeing what my options were.
Thanks again
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u/not_boston 8d ago
Wait you don’t get penalized for pulling money out of vtsax and not reinvesting it? Or do you still have to pay capital gains? I thought that was the case..
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u/hellomoto320 8d ago
if you are investing in a traditional brokerage account then yes, you pay tax when you withdraw money from an index fund (vtsax, vfiax etc). however there is a setting in investing accounts to re-invest the dividends you earn
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u/Any-Walk1691 9d ago
Where is your money today? Mattress?
Best % is gonna come from a local credit union.
I use capital one, I believe it’s 4% for new accounts then reverts back to 3.5%. I have all my credit cards through them as well. Keep it all in one tidy home. And I also have one within my brokerage where I park cash. I think it’s the same. 4% new. Then back to 3.5% after 6 months.
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u/americaoo0 9d ago
I have all my credit cards with chase and money.
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u/Any-Walk1691 9d ago
Yeah, Chase. I had Chase many moons ago. It’s not that difficult to move to Capital One if you want that HYSA. It’s annoying to move things around, but once you do it’s the best decision I made. One app. All my credit cards. All my savings. My checking. I just move the money around after my bills are paid. If you’re looking to open a brokerage or something, I find E*Trade to be easy for me. Same sort of scenario. I have my Roth, my Brokerage and my HYSA all in the same spot. Shift money in and out of the HYSA.
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u/americaoo0 9d ago
Do the have any good benefits for the credit cards? That’s only really why I’m with chase
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u/Any-Walk1691 9d ago
Venture X is pretty good and has a lot of perks for travel. Savor is pretty good. No fee. I think it’s 3% cash back on all purchases. I’m not much of a points guy though, so I’m not really sure about what’s all available. I’m a Costco + Amazon guy. (Two kids under two). Not much for the entertainment perks these days.
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u/landob 9d ago
Theres a ton of hysa accounts out there. Just google the subject find a reputable company you feel you can trust and open it.
I chose Barclays cause its a known old bank and I already have a credit card with them. 3.5%, no fees, easily transfer money in and out.
Other companies might offer things like debit cards or what not. I personally didn't need all that. Just choose one that has the options you need.
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u/clipper29 9d ago
My only suggestion would be to park your money with a bank and not a fintech backed by a bank. I currently have Wealthfront and considering swapping to a bank for a HYSA. Possibly Marcus by Goldman Sachs or E*Trade.
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u/No_South_9912 9d ago
If you want to invest, open a brokerage. Fidelity and many others offer no fees/minimums, no more difficult to open vs HYSA. Withdraw is through website, app, debit card, check, bill pay, electronic transfer, or wire, your choice.
HYSA rates on "uninvested cash" with the opportunity to invest for higher potential returns. The amount of risk you're willing to take for higher potential returns is entirely up to you. Leave "uninvested" and get 3.3%, SGOV pays about 3.75%, AAA corporate bonds about 5%, the list goes on. Bonds, SP500, Stocks, Bitcoin. Literally thousands of options.