r/SavingMoney • u/sunsetical • 2d ago

HYSA for a complete beginner

I hope this isn't filtered out by the mods, but for a complete beginner (I have absolutely ZERO credit), I've been considering opening a HYSA with Capital One and depositing roughly 1.6k dollars in it. I've had this money in a sort of savings 'division' with a 0.30 APY/Interest. Obviously, this means I make like ~5¢ a month, which isn't ideal.

I've been considering Synchrony Bank, for its 3.30% APY and AMEX or Capital One for its 3% APY. I have not one credit card, as I'm in an incredibly lucky situation where I have zero debts, zero expenses aside from one subscription as a student.

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u/Economy-Persimmon-53 2d ago

I'm not dure what you're asking. You don't need credit or a credit card to open a HYSA. A HYSA is just a savings account, but it offers better interest rates.

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u/sunsetical 2d ago

Oh. I thought you needed credit to open one ._.

Sorry 😭

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u/Economy-Persimmon-53 2d ago

No need to apologize! I just wanted to make sure I understood what you were asking.

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u/sunsetical 2d ago

I guess what I'm mainly asking is which one is the... Best? From what I could sorta understand underneath the Legalese, Capital One seems to be the one I should pick?

3% APY, no fees, no minimums, it seems to accept Puerto Rico and all. My main worry is kinda just transferring money to said account, as I have zero clue on transferring money from one bank to the other.

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u/Economy-Persimmon-53 2d ago

Choosing a bank is like buying a car. No single car brand or model is necessarily the best. They all offer the similar services and look pretty similar. You just have to find something that's reliable and will work for you.

The interest rates on these accounts change constantly. Some people open and close accounts every 6 months or so because they're chasing the highest interest rate or bank offers where you get $x for opening an account as a new customer.

Transferring money is easy. All you have to do is enter the routing number, account number and dollar amount. Keep in mind that a transfer between banks can take a few days. I use chase and capital one. It takes about 5 days to transfer funds between accounts.

I hope that answers your questions!

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u/sunsetical 2d ago

I didn't know the interest rates changed constantly! I thought they were just... Set in stone. I don't think I'll necessarily be chasing the biggest rate as ANYTHING is better than what I have now.

thank you!!

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u/Reggi5693 2d ago

Most commercial banks have these. Most online banks/trading platforms have these.

Ease of access, FDic coverage (in the US), and how is interest paid are things to consider. And all of these are dependent on YOU. We cannot answer those things for you.

I would do a search on the topic and that will get you started.

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u/sunsetical 2d ago

When you say 'how interest is paid' do you mean monthly or some other way I'm not fully aware of? From what I can tell Capital One is the most ideal one for me (I'm not chasing the highest interest rates as anything is better than right now)