Why don't people just go with the highest APY's for HYSA?

They should as long as they keep it under $250,000 for FDIC insurance. The rates move around so it may not be worth switching.

Personally, I went with a bank that I already had a card in so it would all be on one account

Some people consider ease of access. Sure, my Amex doesn’t have the highest APY but I know the funds can be quickly assessed. Also in my mind I know Amex is not going bankrupt anytime soon

Ease of access. And rates are always changing. One day the 5% will drop down to 4.5% and so on.

Sometimes banks will offer a certain rate and then change it after an introductory time period. Some banks require setting up direct deposit which must be done for a certain amount of time or a certain dollar amount, or maintain a certain balance for a certain amount of time.

To me, the reasons they do this are to get you to do your everyday banking/checking with them, too.

Not that it’s true but a lot of “higher rate” banks are temporary and you will see your apr drop after 3/6 months (looking at you Truist. 5.15% to 2.35%) of course I moved after that but you underestimate how lazy some people are as well lol

I went with Capitals 360 HYSA after I opened an Amex HYSA and then spent the better part of a month trying to get them to link my already linked account (I have a gold card) to the savings account. I eventually gave up, and they closed the account for lack of funding lol. I like the Capital for ease of use in the app,...just slide a little from each paycheck over and watch it grow.

I’m not going out of my way to find a HYSA with 5% when my local credit union is 5 minutes away and offers 4.889%

I chose Ally, there are no caveats. With SoFi you need to set up a direct deposit. Many of the best places have silly caveats. Also anytime I call Ally a human answers right away, which I appreciate. Also got a 3% credit card through Ally. Nice to have things consolidated.

Perceived safety is probably the largest factor. Everyone wants their money to be safe. Brand name, banking features and access are a few more. Lots of reasons to choose one over the other.

Convenience. My personal credit cards and business credit/debit are with Amex. I've always been happy with them and their customer service if I've ever had any problems. Very easy to have everything in one place!

I keep mine at $249,000. It nets $1000/month and I take the $1000 and invest into voo. Keep it lower than 250 for FDIC.

My boomer mom won't go to a and that doesn't have a local branch so she can see a teller if she needs the money asap.

I primarily just stick with fidelity, rolling t bills are good enough for me, or Even a treasury fund if I want more liquidity. For me if I'm always chasing apy I'll wind up with 30 accounts. And if I need funds fas, they make it easy enough to do a wire, and have large eft limits

Along with what everyone else says. I would also look into to fees and penalties if you go below a certain amount. My cit bank is at 5% but if i go below $5000( i think thats the amount) it turns to like 1%. Moral of the story read the fine print. Some also have minimums if that makes a difference to you

The APYs change all the time and I don't feel like moving my money around chasing a fraction of a percent. I stick with CapitalOne because I trust them and I like their app and customer service. They don't have the highest APY, but it's good enough.

Amex just to not have another app personally

If it's only an extra 15 bucks in interest a year it's not worth jumping through hoops.

For me, the ease of use, I have an account with a cardholder it’s already linked to a checking account for transfers. Plus I already have an app so it’s one less app I need to download and keep track of. Plus at the time they were offering a bonus for creating account and depositing a certain amount so that offset the interest rate to make it actually higher for the time being. If I didn’t already have an account like that I would have purely done it based on sign on bonus/interest rate and ease of creating account.

HYSA % changes often.

Wealthfront is offering 5% APY and up to $8 million FDIC insured.

I chose capital one because I have a credit card with them and I know most are fdic insured but I know capital one isn’t going anywhere. That was the main reason.

I’m with Sofi because of name recognition, FDIC insured up to $2 million, high %, and easy accessibility. You have to hook up a direct deposit to get the high % so I’m just putting in $50 from each paycheck and making actual substantial deposits as needed.

Rates keep changing, and it’s not worth my time to constantly research and switch HYSAs just for extra 0.5% interest. I opened an HYSA a couple years ago with CIT because it was the highest available at time. No longer, but it’s high enough.

Looking at this list…

https://www.nerdwallet.com/best/banking/high-yield-online-savings-accounts

The only two banks that my wife would be comfortable putting our 1 years worth of expenses in are Amex and CapitalOne.

I chose Amex because we both already use the app to manage our cards and our credit card life is already complicated enough. Not that we have any debt.

I chose a lower one because of the minimum deposit requirement. When I was looking for a HYSA most of them wanted me to have thousands of dollars to deposit. I only had 200, so I went with a lower one that didn’t have that barrier.

For us, we have some cash in HYSA but also have CDs. The banks can lower the interest rate on savings account where CDs are locked in.

Apathy, Inertia.

I like my bank, I trust my bank, they offer me 5%. Thats close enough. Someone else offering 5.5? Not worth it.

Your half a percent in gain gets wiped away by hidden fees.

If moving money was frictionless (takes 0 time, settles from one account into another instantly), then yes, you would always want to move your idle cash to the highest yield account (caveat: highest post-tax yield).

Practically, however, a) rates change frequently, b) it takes time, energy, and monitoring to move money when rates change, and c) depending on the institution, you may not be paid interest while funds are moving, which may take up to a few days. As a result, for small changes in APY or small dollars, it doesn't always make sense to be rate chasing.

So, if you have a Joint Hysa , you could be be getting 5% monthly on $500,000? What would the monthly interest be ?would that be $25,000 interest per year ?

Some of the highest rate accounts are tiny banks nobody has heard of that i dont trust.

Also different banks have different features

It costs 50 bucks to wire transfer money from one account to another. Also, banks can change rates at any time. Your best deal today might not be the best deal a month from now.

Too many automatic payments to bother chasing very often

I’ve kept mine at one bank compared to another with a sightly lower return for Zelle.

Why not just money market?

I went with Discover since I have a card, but I have been eyeing BMO’s interest rate….Inwill see how things go next couple of months and possibly transfer.

Been with Synchrony Bank for 6 years. They had 117 billion in assets ending FY23. 37th largest US Bank. Financially stable. Interest rate currently at 4.75% on savings.

It's not sustainable. You'd have accounts EVERYWHERE since the rates are always changing per institution. Feels like you should pick one that's usually relatively high and stick with it

Ppl who put money in HYSA is contributing and accessory to inflation and devaluation of the dollar. But keeping money in any bank you give them the go ahead to buy government debt and that in turn gives government the power to print more dollars causing more devaluation. Buy Bitcoin and take ur money out of the banks.

Wealthfront!

i get 4.6 on sofi. i know i could get 5 somewhere else but that’s a lot of work for 0.4% on a not that big account

Some accounts have daily/weekly/monthly limits on transfers. I know that it took 3 months to transfer all my money to a better HYSA... then another, better HYSA appeared and it took 4+ months to transfer everything to it.

My point is that free ACH transfers are often capped, so be careful. Otherwise, go with the best option.

Sometimes at the time, it was higher. It doesn’t make sense moving from one bank to another just because they are offering 0.75% more. I have 3 credit cards already and a regular checking/saving to worry about.

Robinhood has 5%

Almost went with the bank with the highest apy. Decided to read reviews and go on reddit for that bank before opening an account and I'm glad I did, read horror stories of difficulties getting access to the funds and how the customer support was bad. Decided to go with amex for established customer support and knowing I can access my funds immediately without issues

Different banks have different features. For instance, ally will cover overdrafts on your checking account by insta moving money from savings. That's handy. My LendingClub savings has a higher rate but doesn't do that.

The rates change without notice so as long as it's within the HYSA range of what most banks have, I generally think it's okay. Switching to a bank with a 5% APY when it could go down to 4.50% the next day or week isn't worth it to me

Laziness/comfort with their current bank.

Some of it has to do with the confidence that APY will stay that way because most of the highest ones are for promotional purposes and they aren’t exactly making money on that. A lot has to do with servicing, what good is a bank account if taking money out is a whole big deal…but generally yeah if you have the discipline and patience just keep surfing the highest APY

Raisin.com works with many different institutions under one umbrella. Their highest HYSA is 5.26%. Their highest CD is 5.30%.

I linked mine to my regular bank checking account and moving funds back and forth is fast. While not instant it is back in my regular checking account in about 4 hours flat.

I think it’s more about comfort in where you put your money in. Most people just use HYSA for emergency funds or saving for big purchases. It’s money you want readily available but don’t want to lose money to inflation. I’ve heard some bad reviews on a few of the higher APY options, so just about whatever you’re comfortable with. I’d sacrifice a half percent or something to have it somewhere I’m comfortable with and trust.

Because there is no better HYSA than

|| || |VSMPX|

Because there's no better HYSA than VSMPX

Some accounts are easier to manage than others. I opened an account with “Lending bank” which offers 5% but it takes a week to transfer money from my checking to the account. My Amex HY account transfers the money in a day or two

At the end of the day I can trust a major brand name bank over one I’ve never heard before.

I bank fully with Amex. Getting a tiny bit of a higher percentage and having the hassle to transfer between banks isn’t worth it for me

For me even though I’m losing out on 0.75%, I like going with a reputable institution and there’s a convenience factor. Since I’m already in their system and it’s one less account to manage.

I’m really not sure I trust these fintechs with my money. They’re tempting but I want my growth in a hysa to be absolutely safe.

Went with one I trust. I know FDIC is a thing but I feel better having my money with a reputable company.

People like convenience and likely feel the chore of moving money to different accounts and managing it isn’t worth the extra .5% or whatever the difference is.

The rates jiggle around. I’m a huge fan of Vanguard Cash Plus. Great rate, higher FDIC insurance, and Vanguard rules!

I use the Apple one. It’s not the highest but it means that any cash back I get from the card gets automatically gets deposited there which is nice.

The rates aren’t locked. They will vary.

Eh, I was tired of HYSA hopping. Just a bit of chore to open a new account, routing info, moving stuff around, etc. I just decided to ditch all that and throw my emergency fund in a MMF through Fidelity where I keep my Roth. That way most of my finances are in one place. Rate is typically competitive with other HYSA’s and FDLXX is mostly state tax free.

I switched from a higher HYSA to a slightly lower rate because the first one didn't offer 2fa which I didn't feel comfortable with given how much money I stash there.

Just laziness/lack of interest. Not everyone is checking rates all the time. Or sometimes the slight difference in rate doesn’t move the needle for people and they don’t bother transferring.

Worse is to think about all the people who use traditional big bank savings accounts, not even HYSA. it’s crazy but people do it.

I have multiple Amex cards and because I was already setup with an account and 95% of the info needed to open account it was about 30 seconds worth of effort to open an account with them. I had already procrastinated too long in doing it and the ease of doing it helped me get it done. If I went with another site I’d probably not have done it yet.

Have the Discover hysa, checking and charge. Not the highest yield but no issues wiring money to buy a house (268k), transfers are immediate and I've been happy with their customer service..

You have to read the fine print.. some companies are offering 5.25% only for the first year and then it drops to 0.5%.. Some are difficult to work with when you want to take the money out.. Amex HYSA is the best in my opinion.. Once I max out my FDIC insurance there then probably look at Marcus Goldman sachs.

Went with amex despite it not having the beat rate because it was easy to open the same day as they already had all my info they needed. and I want to maintain a banking relationship with them for when I want to ask for credit increases/waive fees/ retention stuff, etc.

I would recommend putting most of your money in an investment account instead of an HYSA. Most investment accounts have an HYSA-like feature for non-invested funds. The uninvested cash in my fidelity account is currently making 5.1% with no account minimums or fees that an HYSA might have.

Some are lazy, some don’t know how to do the math. Some don’t know of the meaning of APY.

Wealthfront = 5% APY, with 5.5% if you refer a friend, and up to 8 million $ FDIC insured.

HYSA's should not be the basis of your investment strategy unless you have very little money set aside or your are nearing retirement. I'm not sure why there's such emphasis on them here.

You want to go as high as posable but sometimes it is hard to tell if they are FDIC insured, sometimes it is just a temporary rate, sometimes they have fees or minimal amount you need in the account. It seems like the higher rate they offer there are more shady strings attached.

 For me and a lot of other people we trust Ally bank but they never offer the best rates maybe 4.20% right now but you won’t have any problems with fees or taking your money in or out at any time. I also have an account with Welthfront which offers a better rate 5% to 5.5% but I don’t have as much trust with them… it should be fine... probably.

Everbank is 5.15%

Bank loyalty. Sometimes a few fractions of a point isn’t worth moving large sums of money. When I opened my HYSA, it was the highest in the market. Now it’s not.

Convenience, I suppose. I went with highest APY last year, 5.25% variable. But it's since been lowered to 4.94%. The bad news is it's separate from my other checking, savings, & CC accounts. The good news is the customer service is amazing and security monitoring seems great.

I could get 5% at a local credit union but i don’t live in that county so I’m going with the Amex HYSA at 4.25% partially because there are no withdrawal limits.

People are too lazy to click their mouse a few times to open an account. Yet they can scroll TikTok for hours.

I use CitBank and BaskBank.

Because QQQM is better

I have $10,000 and need advice on a high-yield savings account (HYSA). I won’t be able to add more funds monthly, so this will be a single deposit. I’m looking for an HYSA where I can easily transfer money to and from my bank. Are there any banks that accept a $10,000 deposit?

Because they are being really dumb. Get a calculator and see what the difference will be between banks with different rates. I have two now. CIT at 5.06 % and Western Alliance Bank at 5.36 %.

My bank has interest rates at 5.2% and 5% not sure what the term limit is on the places you’ve looked but with my bank you can get 5.2% for six months and 5% for 12. You’re better off going with the 5.2% since you can just renew the term each time so you get that extra .2% which adds up faster than a static 5.

o.o 5%.... so low....