The Julio Blog

To the point: A high yield savings account is a savings account with (higher) interest returned on your principle.

The “Old Way”

Accounts at most banks range below 1%. One percent was seen as good at one point. What banks do with your deposit is reinvest your money in stocks, giving out loans, or other forms of investments that make your money work for them. Then, they give you <1% return while they keep the rest.

Make Money Work For Your

Nowadays, there are many banks that offer between 4% to 5% at the date of this post. This takes your $5,000 making $5 a year to now making $250 a year.

A couple I would recommend are Wealthfront, CaptialOne, and SoFi. Your money should work for you at a rate you deserve. There are many more accounts with different pros and cons depending on your money goals.

A quick google search for “HYSA for ” + “College Student” or any walk of life can help. I do ask that you do research what you want out of an HYSA and if it aligns with your wealth goals. This money can be used for quick access if an emergency were to happen, or for saving towards a short-term purchase.

What To Know Before Opening an HSYA

As you narrow down the banks, dig deeper to understand: account minimums they may require, yield rates you are happy with, fees associated in opening or withdrawing, and how fast can they transfer your money if needed. Location does not usually factor in since almost everything can be handled virtually.

If you have a bank you prefer and I did not mention, please share below!