Its disgusting that it's taxed. We work hard to make decisions to better our lives, they put their greedy shitty hands in it and lie about how our tax dollars are being utilized.
In the 80's I worked at a bank in the summers while in college (teller). We were trained to tell people they could move out of their XYZ savings, into PDQ savings with a better interest rate, we didn't try to keep them in crap accounts like today! My wifes savings is like .05% yet they have a 4.5% she could just open and move to (we will soon) but in many years they never mentioned that account as an option to her (not that she was there much in person, but still, no emails, letters, nothing).
I was pissed when I only made $11 on interest off 16k sitting in a regular Savings, I did research and moved everything over to a HYSA almost immediately, my own bank offers a HYSA I can’t believe I been missing out on free money 🤦🏽
Thank you! This is the info I needed and gives me confidence to move my savings into a high-yield account. For now I will use the same bank that has my checking account for ease of use. The rate is currently 4.30% and regular savings is currently 0.3%. It's "funny" they always advertise their credit cards to me, but never the high-yield savings.
My emergency fund is dividend and placed in 6 month CD's. One expires every 30 days. I just rolled one at 4.6% through Schwab brokerage acct. Then I keep one months expenses in my checking acct. It's worked for me so far.
Cit bank does a saving account at 4.85% min 5,000 to keep it below that its nothing buy they have a 4.45% with min deposit 100$... but they also have a 5% 6 month cd.... honestly cs, money market, hysa they're all around the same amount just work differently
I just opened two high yleds savings accounts at 5% each and I'm getting like $200 bonus for opening these accounts. I'll see what kind of taxes I'll owe for 2023 on these things 😅. Subscribed
Just finished reading about the pros and cons of high yield savings accounts, and wow, what an eye-opener! The insights provided were incredibly valuable in helping me weigh the benefits against the potential drawbacks. On one hand, the higher interest rates and potential for greater returns are certainly enticing, but it's crucial to consider factors like minimum balance requirements and withdrawal limitations. This article shed light on both the perks and the pitfalls, empowering readers to make informed decisions about their savings strategies. Highly recommend giving it a read!
Do they charge a monthly or yearly fee if you make too much money off the interest? What are (if any) any hidden fees? I do understand the interest is taxable.
It depends on the bank. Some may have fees while others don't. You will just have to read the facts on the accou t. I just opened a HYSA at American Express and there is no fees for it. I will just have to claim the interest as income when it comes to taxes.
That’s what you should consider depending on your income and filing status… You might have to pay the feds at tax time if you have little to deduct but the rule of thumb is if you get a return, you are giving the government an interest free loan so either break even or pay 🤔
What if you’re a young adult in your 20s who’s starting to start a savings account? Ex if they have 500 in their savings, is it worth moving it to a HYSA while slowly adding to it?
Let's think deeper about that question, because it's a good one. What would happen to your money, assuming it is under the FDIC limit, if that online bank isn't around 10 years from now? In this hypo, what happened to the bank?
Yes, you do. If you earn more than $10 of interest over the course of the year, the company that holds your money will send you a 1099 to include in your tax return.
Like many things in personal finance, the answer is...it depends. The interest is taxable income, however whether the interest is actually taxed depends upon your taxable income level (including this taxable interest) and the deductions of your personal situation. But the interest does count as taxable income. Thanks for watching!
Here in australia the banks are holding tax on the interest they pay us so yes it is being taxed and you have no access to the full interest to make any deductions
What's the difference between a high yield savings account and a money market account? MM accounts seems to offer even higher interest and I don't see any catch as to why I should prefer a savings account to it.
Great question. Broadly speaking, they are very similar. It all depends upon the institution that is offering it. As long as it is a money market account with FDIC insurance it is very comparable to a HYSA. In general, with a money market account, they often have minimum balance requirements where most HYSA do not. That is sometimes how they can offer a higher rate. However, interest rates are not always higher even with a higher minimum balance requirement. Additionally, sometimes banks will charge an annual fee for a money market account whereas HYSA typically have no fees. Bottom line, they are extremely similar but can vary from bank to bank so make sure you compare the Rate, The Access to the Funds, Any Minimum Balance, FDIC Insurance, and any potential fee. MM mutual funds are not FDIC insured, but I am assuming you aren't asking about those. Thanks for the sub! Cheers!
Most MM accounts have a tiered system where you earn more with higher minimum balances, which aren't always higher than HYSA. But, it helps build your relationship with the bank. I have one of both.
Almost any investment when it pays interest or has capital gains pays tax. The interest on HYSA is treated like other sources of income and is taxed at your marginal income tax rate.
I keep trying to tell everybody I know to put their money as much as they can in a high yield savings account. I started doing this in 2017, actually when interest rates were really low. I’m so glad it did. I just park as much money as possible there, to collect interest, and use when needed. I’m going to be sad when rates start coming down later this year (2024) 😕
It all depends upon your tax bracket. If your bracket is low enough it will not be taxed. But it is taxed as ordinary income just like if you were paid from a job. So, whatever your marginal tax bracket is, is how much the tax will be.
ONE MORE THING to consider: Beware of online banks based in any of the 6 states which impose an INHERITANCE TAX on any assets held in that state. So when you die, your heirs will pay INHERITANCE TAX on any balance. Iowa, Kentucky, Maryland, Nebraska, New Jersey, & Pennsylvania are the six states with this disgusting practice. You needn't live there, just hold assets in one of these states, and they'll take a cut when you pass away. I learned this by experience, when a family member passed away.
The inheritance tax doesn't discern whether it is a HYSA, a stock, bond, or crypto but you are correct. It is there. In Maryland it has been around since 1975. Tax rates for decedents who died on or after July 1, 2000: Property passing to a child or other lineal descendant, spouse of a child or other lineal descendant, spouse, parent, grandparent, stepchild or stepparent, siblings or a corporation having only certain of these persons as stockholders is exempt from taxation. _10% on property passing to other individuals._
Does the compound interest on this HY account outweigh the tax? I ask this because I never pay on my tax returns. I always save all of my tax refunds every year. That’s around $1,600 total combined refunds (Fed and State) into my savings every year. The tax involve is the only factor that’s holding me back from opening this account.
Great question, in most cases you will be taxed on the interest received at your current marginal tax rate. That varies depending upon your personal situation, and for some people that tax rate could be 0%. But, it is always much less than 100%. In all situations I can think of, receiving interest and paying tax is better than receiving zero interest. Thanks for the comment and the sub! Cheers!
...you misspelled "interest free loan of my hard earned money to an unchecked and widlly wasteful government to implement policies that harm me further"...
If you have 10k in a hysa you’ll receive around $450 in a year and you’ll owe around $100 on that. So instead of receiving $1600 at the end of the year you’ll get $1500. Easy math.
You can buy T Bills if you want to avoid local/state taxes. Otherwise pay the tax. This country has given more to you than what you pay in paltry taxes.
Great Question! IMO it’s deeper than the interest rate. Of course you want a competitive interest rate, but also the ease of use. Some banks are more restrictive on where they accept deposits from. For instance, some HYSA will not accept deposits from annuities or social security. Additionally, how easy is it to use the app or bank online. Some are better than others. Find one you are comfortable with. Cheers!
I opened an online High yield savings account with 5.12863% interest compounded daily. So I put in an initial $200.00 thinking I would get the $10.20 on the last day of the month as I do with my other higher yield savings account. However, I only got $.42 in interest. When I inquired, she stated that it was a "daily sum calculated" interest. This was NOT stated anywhere in the interest descriptions ANYWHERE on the website. The only reference to interest calculation was "comounded daily". I immediately took the money out back into my other higher yield savings account which was a little bit of a lower rate - but at least I was getting the credit in interest that was stated - 4.20% interest. What a SCAM
That $10.20 you calculated is correct….but you have to divide that $10.20 by 12 to see what you would get for just one month! “Compounded Daily” is still baselined on a one year calculation total…the banks do make it sound better by saying that though!
What advice would you give to someone is isn’t able to put Aton of money into savings I can sadly put around $50 into savings without hurting my bank I have about $500 in my Amex HYSA but not sure if I’m making the best choice or if I’m better with something like investing with Sofi weekly dividend (wkly)
Thanks for watching. Everything on this channel is for educational purposes. Nothing is personal investment, tax or planning advice. You would need to find a non licensed "advisor" for that... and not sure you would want to ;). IMO, after necessary expenses to live, the HYSA should be funded with cash flow not intended for retirement or longer term growth. As long as there is FDIC insurance, and no fees, the differences are pretty small. They all jockey for who is paying the most each month, but usually the difference is pennies. The big difference is from 0.01% at the brick and mortar banks. Hope this helps! Thanks for the sub @bigmosh!
I have an 84 yr old friend, he is still living in 1980 as far as his banking goes. I have been trying to educate him and his wife. For some people common sense was not given out.
Ive been considering this for abt 3 yrs already & always hesistate. Now im hesitating due to taxes😢 i wasn't aware we paid taxes on HYSA. With my investment, i'd get $500 interest and pay back $110 in taxes. It's still better than the 1 penny i get with chase. Being an adult isnt easy!!
It depends upon the bank, but typically no transfer fees. However, there typically is a monthly transfer limit on the number of transfers you can make. Hope that helps. Have you opened one?
I currently have $800k in a high yield savings account, yes I’m making gains but to what extent with inflation eating away at the dollar? Am I better off investing in the stock market or buying a house?
Great question #HuntaUA! I discuss it in this video:👉ua-cam.com/video/8B5kBEIheBM/v-deo.htmlsi=aBTnXw63kLSbuRtW For certain situations heading right to the treasury has a number of advantages. But, ease of transfer between banks isn't one of them. IMO, one of the main advantages of the HYSA over Treasuries is the ease with which you can move funds at a moments notice to a linked checking account.
I know, right? I'll take the passive income from the interest and be taxed on it as long as it doesn't make my social security taxable or put me into an IRMAA surcharge.
Great question. Advertised HYSA rates are annualized rates. The accumulate interest every day and it is paid out monthly. But each day it is only earning 1/365 of that annual rate. Hope that helps.
I'm glad i opened a hysa 10 yrs ago when it was still a low .25% interest rate. Now its brings me about $1500 a yr interest (average about $127 a month) at 5.10% With compounding it will continue to grow. You will receive a 1099 int at end of year but if you are starting off saving the tax on it is minimal.
Or just ask your local bank--most have high yield checking or savings but also tend to have minimums and maximums on that account. If checking, most have min number of transactions required on your debit card; if that raises an eyebrow then yes you should be looking at what they are doing with that data...or be like 99% of others who don't care. Nothing is free.
AMEX hysa has been great. BMO ALTO has been a nightmare. Just beware. You will have nowhere to go when you try to transfer money out, and are gaslit by customer service. Nowhere. Start with small $ until you are comfortable.
Yeah, BMO ripped me off. It wasn’t a lot ($13), but they didn’t pay me the full interest they owed me for one month. I called them, they gave a lame excuse that I didn’t have enough money in there to earn the interest. I did. Every other month has been just fine. Wonder how many other people they ripped off. 🤔
100% correct. Thanks for the comment and the Sub! That isn't the design or purpose of a HYSA. A HYSA is meant to compete with checking and savings accounts at local banks. Savings it not investing. Savings is for emergencies or shorter term goals where you can't take a risk of loss. Investing is what helps keep up with inflation, but also involves risk of loss. Investing is for your longer-term capital where you have time and can afford volatility.
The .01% savings at the bricks are also taxable and most definitely do no keep up with inflation. And unlike TBills, your money isn't locked up for months at a time.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for....
I currently have $800k in a high yield savings account, yes I’m making gains but to what extent with inflation eating away at the dollar? Am I better off investing in the stock market or buying a house?
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Not a lot of "passive income" is passive income. HY Savings interest is truly passive income.
Fiancé and I have 30k just sitting in our Chase savings and was looking for what to do with it, this video helps! Thanks
Glad it was helpful! "See the Forest!"
Same. Chase sucks
Going down a 1am rabbit hole… HYSA, CDs, MMDAs.. Which to choose haha thank you for the information!
Good luck! Check out my other video on CD's and T Bills for some additional help! ua-cam.com/video/8B5kBEIheBM/v-deo.htmlsi=yU9-6jQsCBv_PaeA
You not alone 😂😂😂
I like the ease of access with my HYSA Vs. a CD with a maturity date
My only regret in High Yielding Savings Account is I didn’t start with one earlier.
Just fyi the interest (money) gained is taxed every year
@ryanlauthers9786 every thing is taxed including any other accounts such as CDs
@@ryanlauthers9786yup, but you'd still earn more than a traditional account
Its disgusting that it's taxed. We work hard to make decisions to better our lives, they put their greedy shitty hands in it and lie about how our tax dollars are being utilized.
@@ryanlauthers9786 THAT IS THE MOST COMMON SENSE STATEMENT EVER… DUHHHHHH who cares ?
In the 80's I worked at a bank in the summers while in college (teller). We were trained to tell people they could move out of their XYZ savings, into PDQ savings with a better interest rate, we didn't try to keep them in crap accounts like today! My wifes savings is like .05% yet they have a 4.5% she could just open and move to (we will soon) but in many years they never mentioned that account as an option to her (not that she was there much in person, but still, no emails, letters, nothing).
why would a business do that?? instead you can send them a credit card offer that will make you more money??? thats a shame fr
I was pissed when I only made $11 on interest off 16k sitting in a regular Savings, I did research and moved everything over to a HYSA almost immediately, my own bank offers a HYSA I can’t believe I been missing out on free money 🤦🏽
Thank you! This is the info I needed and gives me confidence to move my savings into a high-yield account. For now I will use the same bank that has my checking account for ease of use. The rate is currently 4.30% and regular savings is currently 0.3%. It's "funny" they always advertise their credit cards to me, but never the high-yield savings.
Of course because banks don’t want you to know you can get 5%. They want you to stay at .01% lolll
My emergency fund is dividend and placed in 6 month CD's. One expires every 30 days. I just rolled one at 4.6% through Schwab brokerage acct. Then I keep one months expenses in my checking acct. It's worked for me so far.
That's next level emergency fund! Nice work @super steve!
Cit bank does a saving account at 4.85% min 5,000 to keep it below that its nothing buy they have a 4.45% with min deposit 100$... but they also have a 5% 6 month cd.... honestly cs, money market, hysa they're all around the same amount just work differently
It's not an emergency fund if you can't touch it 😅
Please explain the taxes on this
@@papichefitupyou can take money out of a CD
I just opened two high yleds savings accounts at 5% each and I'm getting like $200 bonus for opening these accounts. I'll see what kind of taxes I'll owe for 2023 on these things 😅. Subscribed
Thanks for the sub and great to hear you getting them set up!
Are there taxes that go along with these high yield savings accounts?
@@Lma1974taxes on the dividends (money you make).
@@Lma1974 Of course you pay taxes. It is taxed as regular income.
@@Lma1974Yes. If your interest is over $10 per bank per year, you'll get a 1099 INT.
Great info. Just set up a HYS with Amex. 3.75%
Outstanding!
I have one with PNC @4.75%
I just got a letter from AMEX the other day about the HYSA and wasn't sure to trust a credit card company. Lol
You can get over 5% HYS at some online banks now.(11/2023)
Great explanation. Very concise and informational. Thanks!
Glad it was helpful!
Honestly I just learn about this today. IDK what I was doing but
Your expertise is appreciated.Thank you.
Just opened a HYSA via Western Alliance Bank via Raisin 5.15%
Just finished reading about the pros and cons of high yield savings accounts, and wow, what an eye-opener! The insights provided were incredibly valuable in helping me weigh the benefits against the potential drawbacks. On one hand, the higher interest rates and potential for greater returns are certainly enticing, but it's crucial to consider factors like minimum balance requirements and withdrawal limitations. This article shed light on both the perks and the pitfalls, empowering readers to make informed decisions about their savings strategies. Highly recommend giving it a read!
This is a video on the topic. What were you reading about?
I feel like i just got 500 free XP. Very informative!
tf lmao
Do they charge a monthly or yearly fee if you make too much money off the interest? What are (if any) any hidden fees? I do understand the interest is taxable.
It depends on the bank. Some may have fees while others don't. You will just have to read the facts on the accou t. I just opened a HYSA at American Express and there is no fees for it. I will just have to claim the interest as income when it comes to taxes.
That’s what you should consider depending on your income and filing status…
You might have to pay the feds at tax time if you have little to deduct but the rule of thumb is if you get a return, you are giving the government an interest free loan so either break even or pay 🤔
Sending this video to my mom. High Yield Savings Acct is that way to go!
That's a great idea. The amount of money older Americans keep at traditional banks earning 0.01% is astounding. Thanks for watching!
What if you’re a young adult in your 20s who’s starting to start a savings account? Ex if they have 500 in their savings, is it worth moving it to a HYSA while slowly adding to it?
100%
Great video! So glad to have found your channel!
My problem with online only banks, will that Bank still be around 10 years from now...?
Let's think deeper about that question, because it's a good one. What would happen to your money, assuming it is under the FDIC limit, if that online bank isn't around 10 years from now? In this hypo, what happened to the bank?
Great information. With inflation eating away at my savings account, this could help. Thank you 🤑
Glad it was helpful!
Do you have to report the interest earned if you dont withdraw from the hysa?
Yes, you do. If you earn more than $10 of interest over the course of the year, the company that holds your money will send you a 1099 to include in your tax return.
Great video! I was just looking into opening a high yield savings account. My question is do you get taxed for the interest that you earned?
Like many things in personal finance, the answer is...it depends. The interest is taxable income, however whether the interest is actually taxed depends upon your taxable income level (including this taxable interest) and the deductions of your personal situation. But the interest does count as taxable income. Thanks for watching!
Here in australia the banks are holding tax on the interest they pay us so yes it is being taxed and you have no access to the full interest to make any deductions
Of course you get taxed. Your bank will send you a form every tax season
@@brainiac006I can’t believe you guy still live in Australia. That government is out of control.
What's the difference between a high yield savings account and a money market account? MM accounts seems to offer even higher interest and I don't see any catch as to why I should prefer a savings account to it.
Great question. Broadly speaking, they are very similar. It all depends upon the institution that is offering it. As long as it is a money market account with FDIC insurance it is very comparable to a HYSA. In general, with a money market account, they often have minimum balance requirements where most HYSA do not. That is sometimes how they can offer a higher rate. However, interest rates are not always higher even with a higher minimum balance requirement. Additionally, sometimes banks will charge an annual fee for a money market account whereas HYSA typically have no fees. Bottom line, they are extremely similar but can vary from bank to bank so make sure you compare the Rate, The Access to the Funds, Any Minimum Balance, FDIC Insurance, and any potential fee. MM mutual funds are not FDIC insured, but I am assuming you aren't asking about those. Thanks for the sub! Cheers!
Most MM accounts have a tiered system where you earn more with higher minimum balances, which aren't always higher than HYSA. But, it helps build your relationship with the bank. I have one of both.
Great information
never understood how old ppl dont know how to use online banks, or the internet in general…like they were the first one to be introduced to it..
What is the minimum amount recommendation to start a hysa?
I would say "any amount." It will only grow, and you can add as time goes by. If the bank has a minimum they will make that clear.
@@susanlynch6680 isnt most of this taxed so the passive income isnt that high after all and HYSA need a higher minimum balance
What about being taxed on hys after already being taxes on the deposits?
Almost any investment when it pays interest or has capital gains pays tax. The interest on HYSA is treated like other sources of income and is taxed at your marginal income tax rate.
I really appreciate the informative video.
Glad you enjoyed it! There is more where that came from. Just poke around the channel for some great financial planning tips.
Did not mention anything about taxes can you give a quick overviewb
Great question! All interest is included in your income for the year. It may or may not be taxable depending upon your income level.
I keep trying to tell everybody I know to put their money as much as they can in a high yield savings account. I started doing this in 2017, actually when interest rates were really low. I’m so glad it did.
I just park as much money as possible there, to collect interest, and use when needed.
I’m going to be sad when rates start coming down later this year (2024) 😕
How much will you pay to the IRS on the $838 earned on the example showed? Savings accounts are taxable 😢
It all depends upon your tax bracket. If your bracket is low enough it will not be taxed. But it is taxed as ordinary income just like if you were paid from a job. So, whatever your marginal tax bracket is, is how much the tax will be.
Excellent video! Thanks!!
Thanks for watching!
ONE MORE THING to consider: Beware of online banks based in any of the 6 states which impose an INHERITANCE TAX on any assets held in that state. So when you die, your heirs will pay INHERITANCE TAX on any balance. Iowa, Kentucky, Maryland, Nebraska, New Jersey, & Pennsylvania are the six states with this disgusting practice. You needn't live there, just hold assets in one of these states, and they'll take a cut when you pass away. I learned this by experience, when a family member passed away.
Of course. Always here to help! Be on the lookout for an upcoming announcement!
The inheritance tax doesn't discern whether it is a HYSA, a stock, bond, or crypto but you are correct. It is there.
In Maryland it has been around since 1975.
Tax rates for decedents who died on or after July 1, 2000:
Property passing to a child or other lineal descendant, spouse of a child or other lineal descendant, spouse, parent, grandparent, stepchild or stepparent, siblings or a corporation having only certain of these persons as stockholders is exempt from taxation.
_10% on property passing to other individuals._
Does the compound interest on this HY account outweigh the tax? I ask this because I never pay on my tax returns. I always save all of my tax refunds every year. That’s around $1,600 total combined refunds (Fed and State) into my savings every year. The tax involve is the only factor that’s holding me back from opening this account.
Great question, in most cases you will be taxed on the interest received at your current marginal tax rate. That varies depending upon your personal situation, and for some people that tax rate could be 0%. But, it is always much less than 100%. In all situations I can think of, receiving interest and paying tax is better than receiving zero interest. Thanks for the comment and the sub! Cheers!
...you misspelled "interest free loan of my hard earned money to an unchecked and widlly wasteful government to implement policies that harm me further"...
If you have 10k in a hysa you’ll receive around $450 in a year and you’ll owe around $100 on that. So instead of receiving $1600 at the end of the year you’ll get $1500. Easy math.
You can buy T Bills if you want to avoid local/state taxes. Otherwise pay the tax. This country has given more to you than what you pay in paltry taxes.
@@carltonbanks5470what is a Tbill?
How can you determine which online banking option is the best? Do you just go off interest rate?
Great Question! IMO it’s deeper than the interest rate. Of course you want a competitive interest rate, but also the ease of use. Some banks are more restrictive on where they accept deposits from. For instance, some HYSA will not accept deposits from annuities or social security. Additionally, how easy is it to use the app or bank online. Some are better than others. Find one you are comfortable with. Cheers!
Does opening a HYSA ding your credit?
Great question! It does not. A savings account is for saving extra money you haven't spent. It is not accessing debt, which requires a credit inquiry.
Is this only available for citizens of the US? Or is it a service that banks offer globally?
How do you transfer money into a HYSA without being charged?
I opened an online High yield savings account with 5.12863% interest compounded daily. So I put in an initial $200.00 thinking I would get the $10.20 on the last day of the month as I do with my other higher yield savings account. However, I only got $.42 in interest. When I inquired, she stated that it was a "daily sum calculated" interest. This was NOT stated anywhere in the interest descriptions ANYWHERE on the website. The only reference to interest calculation was "comounded daily". I immediately took the money out back into my other higher yield savings account which was a little bit of a lower rate - but at least I was getting the credit in interest that was stated - 4.20% interest. What a SCAM
That $10.20 you calculated is correct….but you have to divide that $10.20 by 12 to see what you would get for just one month! “Compounded Daily” is still baselined on a one year calculation total…the banks do make it sound better by saying that though!
Same thing happened to me and i immediately took the money out. It was the capital one high yield account
@@washingtonfitness1262that percentage is as a whole year not monthly
Thank you for the information.
Our pleasure!
How to avoid paying taxes on yield tho. If I don't cash in then is there tax on unrealized gaines?
What advice would you give to someone is isn’t able to put Aton of money into savings I can sadly put around $50 into savings without hurting my bank I have about $500 in my Amex HYSA but not sure if I’m making the best choice or if I’m better with something like investing with Sofi weekly dividend (wkly)
Thanks for watching. Everything on this channel is for educational purposes. Nothing is personal investment, tax or planning advice. You would need to find a non licensed "advisor" for that... and not sure you would want to ;). IMO, after necessary expenses to live, the HYSA should be funded with cash flow not intended for retirement or longer term growth. As long as there is FDIC insurance, and no fees, the differences are pretty small. They all jockey for who is paying the most each month, but usually the difference is pennies. The big difference is from 0.01% at the brick and mortar banks. Hope this helps! Thanks for the sub @bigmosh!
Take those 500 &buy a mower and edger and start making side money.
It's shocking how so few people have a HYSA. I thought it would be common sense.
I have an 84 yr old friend, he is still living in 1980 as far as his banking goes. I have been trying to educate him and his wife. For some people common sense was not given out.
We learn each and every day so glad I’m aware now 🙌💙💸💵
Not everyone was exposed to that information. Everything isn't common sense. Since we are in the digital age, we get to come across videos like this.
@@generationalwealthnowthank you..
Ive been considering this for abt 3 yrs already & always hesistate. Now im hesitating due to taxes😢 i wasn't aware we paid taxes on HYSA. With my investment, i'd get $500 interest and pay back $110 in taxes. It's still better than the 1 penny i get with chase. Being an adult isnt easy!!
It's a whole lot better than the one penny.😉
Is there a transfer fee from bank to HYSA? And HYSA to bank?
It depends upon the bank, but typically no transfer fees. However, there typically is a monthly transfer limit on the number of transfers you can make. Hope that helps. Have you opened one?
@@seetheforestthroughthetrees 6 transfers or payments is the limit
Taking a cash withdrawal in the branch or using an atm do not count toward the 6
High-yield savings accounts are perfect for emergency funds or short-term savings
I currently have $800k in a high yield savings account, yes I’m making gains but to what extent with inflation eating away at the dollar? Am I better off investing in the stock market or buying a house?
with you asking these queistions the awnser is leave it in the high yield
Look into index funds or ETFs.
Great content
Awesome! Thanks for the comment and the sub!
Why do I need it if I can invest straight to US Treasury?
Great question #HuntaUA! I discuss it in this video:👉ua-cam.com/video/8B5kBEIheBM/v-deo.htmlsi=aBTnXw63kLSbuRtW
For certain situations heading right to the treasury has a number of advantages. But, ease of transfer between banks isn't one of them. IMO, one of the main advantages of the HYSA over Treasuries is the ease with which you can move funds at a moments notice to a linked checking account.
Many don’t want to pay taxes on the interest😂
I know, right? I'll take the passive income from the interest and be taxed on it as long as it doesn't make my social security taxable or put me into an IRMAA surcharge.
does the 4% accumulate monthly or yearly, example if I have a 100k HY am I getting 4k monthly or 4k yearly
Great question. Advertised HYSA rates are annualized rates. The accumulate interest every day and it is paid out monthly. But each day it is only earning 1/365 of that annual rate. Hope that helps.
4% x 100k = 4K
4K/12 = $333.33 you are receiving $333.33 per month
I'm glad i opened a hysa 10 yrs ago when it was still a low .25% interest rate.
Now its brings me about $1500 a yr interest (average about $127 a month) at 5.10%
With compounding it will continue to grow.
You will receive a 1099 int at end of year but if you are starting off saving the tax on it is minimal.
Or just ask your local bank--most have high yield checking or savings but also tend to have minimums and maximums on that account. If checking, most have min number of transactions required on your debit card; if that raises an eyebrow then yes you should be looking at what they are doing with that data...or be like 99% of others who don't care. Nothing is free.
AMEX hysa has been great. BMO ALTO has been a nightmare. Just beware. You will have nowhere to go when you try to transfer money out, and are gaslit by customer service. Nowhere. Start with small $ until you are comfortable.
BMO ALTO?
Keep in mind that not everyone will understand acronyms
Yeah, BMO ripped me off. It wasn’t a lot ($13), but they didn’t pay me the full interest they owed me for one month. I called them, they gave a lame excuse that I didn’t have enough money in there to earn the interest. I did. Every other month has been just fine. Wonder how many other people they ripped off. 🤔
I keep my savings in mutual funds
If there is risk of loss, it isn't savings, it's an investment...
No one ever talks about that. It's taxable and it doesn't keep up with inflation
100% correct. Thanks for the comment and the Sub! That isn't the design or purpose of a HYSA. A HYSA is meant to compete with checking and savings accounts at local banks.
Savings it not investing. Savings is for emergencies or shorter term goals where you can't take a risk of loss. Investing is what helps keep up with inflation, but also involves risk of loss. Investing is for your longer-term capital where you have time and can afford volatility.
The .01% savings at the bricks are also taxable and most definitely do no keep up with inflation. And unlike TBills, your money isn't locked up for months at a time.
What about taxes to Uncle S
Potentially taxed as interest income depending upon your income level.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for....
I cannot believe I am just hearing about this…
Anyone have any experience in putting their money in CD's?
Not sure this is better than LADDERED CDs.
Maybe the other folks put money in S&P 500, which gave them 24% return in 2023 😂
I'm not paying them shit in taxes
your tone comes across condescending. ur welcome.
Thank's for watching
No it doesn’t 😂
Colin's tone and content are fine.
You sound broke. You’re welcome.
High-yield savings accounts are perfect for emergency funds or short-term savings
I currently have $800k in a high yield savings account, yes I’m making gains but to what extent with inflation eating away at the dollar? Am I better off investing in the stock market or buying a house?
Invest in VGT stock and just hold it 5 years and do not panic when it drops it will rise again. You are welcome!😊
$800k with 4 percent gains with no risk. savings accounts are doing better than the stock market