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HYSA
(High-Yield Savings Account)
A HYSA (High-Yield Savings Account) is a federally insured deposit account offering significantly higher interest rates—often 10–20x the national average—than traditional savings accounts. Ideal for emergency funds (EF) or short-term goals.
Online banks like Ally or Marcus by Goldman Sachs provide HYSAs with APYs above 4% (as of 2023), thanks to lower overhead costs. Funds remain liquid, unlike CDs, but federal regulations limit withdrawals to six per month. The FDIC insures HYSAs up to $250,000 per depositor, making them safe havens for cash reserves while outpacing inflation.
Online banks like Ally or Marcus by Goldman Sachs provide HYSAs with APYs above 4% (as of 2023), thanks to lower overhead costs. Funds remain liquid, unlike CDs, but federal regulations limit withdrawals to six per month. The FDIC insures HYSAs up to $250,000 per depositor, making them safe havens for cash reserves while outpacing inflation.