Lecture Notes: High Yield Savings Accounts (HYSA)

Introduction

• Speaker: Anthony Neal
• Main Topic: Benefits of High Yield Savings Accounts (HYSA) and recommendations for the best accounts of 2024.
• Personal Note: Anthony shares he doesn't spend money on traditional dating anymore, as he uses money earned via compound interest from HYSAs.

Importance of High Yield Savings Accounts

• Financial Goals: Saving for emergencies, a car, a home, or vacations.
• High Yield Savings Account (HYSA): Offers substantial interest rates (4.25% to 5% APY), making it beneficial over regular savings accounts.
• Personal Use: Anthony personally uses two of the top five HYSAs he recommends.

Key Features of Recommended HYSAs

1. FDIC Insured: Ensures safety up to a certain amount.
2. Competitive Interest Rates: As of May 2024, rates can change with FED adjustments.
3. Reputable Banks: Established, stable banks, not new startups.
4. No Fees/Minimum Balances: Easy to open; suggested to start with at least $100.

Why Open a HYSA?

1. Higher Interest Rates

   • Average interest: 4.25% - 4.5% APY vs. regular savings at 0.33% APY.
   • Example: $10,000 at 4.5% yields $450/year, compared to $33/year in a regular account.

2. Inflation Protection

   • Helps maintain purchasing power, protecting against the average 2% inflation rate.

3. Easy Access & Low Risk

   • Same FDIC insurance level as regular accounts.
   • Easy access without penalties, suitable for emergencies and short-term goals.

Top 5 Recommended High Yield Savings Accounts

1. Ally Bank

   • APY: 4.20%
   • Known for car loans and stable background.

2. SoFi Bank

   • APY: 4.60% with direct deposit
   • Personal account by Anthony, offers early paycheck and no fees.
   • FDIC insurance up to $2 million.

3. American Express (AmEx) Savings

   • APY: 4.25%
   • Notable for high customer service and no minimum balances.

4. Wealthfront

   • APY: 5% (introductory rate)
   • Known for varying interest rates after initial period.

5. Discover Bank

   • APY: 4.25%
   • Renowned for credit cards, stable financial entity.

Bonus Recommendation

• Bank Purely
  • APY: 5.05% (for balances over $25,000)
  • High FDIC insurance coverage, beneficial for large deposits.

Conclusion

• Recommendation: Start a HYSA today, even with $100, to begin earning substantial interest.
• Liquid vs. CD: HYSAs provide better access to funds compared to CDs.
• Anthony encourages checking the recommended banks to earn "free money" through interest.

Community Engagement

• Call to Action: Subscribe to Anthony Neal’s community for growth in abundance, wellness, and freedom.
• Feedback Request: Suggestions for other high yield savings accounts are welcomed in the comments section.