T3 #002: How I was paid $452.16 by my bank
I get paid to keep my money in the bank.
Over the past 12 months, it was $452.16.
A traditional savings account pays a national average of just 0.42% APY according to the Federal Deposit Insurance Corporation (FDIC).
Last month I got 4.15% APY.
That is ~10x the national average!
No, this isn’t some get rich quick scheme…
…it’s a high-yield savings account (“HYSA”)!
Growing up I had a standard checking and savings account with Bank of America.
I thought getting $0.01 every month was normal.
It is for the uninitiated.
I first discovered HYSA in 2018.
✅ FDIC-insured
✅ Trusted brand name banks
✅Easily access my money
Why did it matter?
At the time I was stashing cash to buy my first piece of real estate.
What that meant was there was a large sum just sitting in my bank account…
…doing nothing.
Correction: losing value due to inflation 😳
I’m all about getting the most for my money, especially in low- to no-risk ways.
I’ve compiled the past 5 years of factors I look for in a High-Yield Savings account in a framework I call, The Lifestyle Method.
There are other things to consider beyond just the highest interest rate.
🏎️💨 Resources to get you started
- Select the best high-yield savings account using the Lifestyle Method
- The 5 Best High-Yield Savings Accounts for August 2023
