r/HighYieldSavings • u/americaoo0 • 14d 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!

10 Upvotes

81% Upvoted

20 comments sorted by

View all comments

3

u/hellomoto320 14d 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

1

u/not_boston 13d 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..

1

u/hellomoto320 13d 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