this post was submitted on 05 Oct 2023
18 points (100.0% liked)
Personal Finance
3739 readers
2 users here now
Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!
Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Make sure you compute exactly how much money you'll earn from switching with how long you'll likely stay put. If you'd stay put an entire year and only earn $20, is it worth it?
Rather than chasing the absolute highest rate, I prefer to choose a bank that is regularly competitive. Ally bank, Betterment, and Wealthfront are all ones I'd consider. Alternatively, you can use a money market fund at a brokerage. Those react very fast to interest rate changes and are higher than any bank I know of right now, but have basically been 0% in the past while banks paid up to 1%.
You should not be looking to make decent money off your HYSA - just take some sting out of inflation for short or medium term goals. To make money in the king term, you need to take more risk and invest.