00:00I've been getting this question a lot. Steve, where do I put my savings without watching it
00:05lose money to inflation? It's a fair question, especially when everything from eggs to gas
00:11seems to go up every month. So today's video is all about high-yield savings accounts, or HESAs.
00:18They're simple, safe, and might be one of the easiest ways to actually grow your savings above
00:23inflation. Give me 10 minutes and I'll break down the benefits, drawbacks, and the best accounts
00:28available today. I'll also include a link to my favorite accounts so you can check for the latest
00:33info since rates do change. Back when I was still teaching, I had all my savings sitting in one of
00:39those big-name banks like Chase, Wells Fargo, or Bank of America. And chances are, you might have
00:45an account with one of them too. Why did I keep my money there? Well, because my parents did. My
00:51friends did. My co-workers did. So, I figured it must be the right thing to do. But one year I looked at
00:58my account and realized I made just $187 in interest. I remember thinking, that's not even
01:05enough for a small boba. Meanwhile, my 6th graders were making more money selling candy bars during
01:11lunch. That's when it hit me. I wasn't the problem. My savings weren't the problem. Where my savings
01:18were, that was the problem. So, I moved my $20,000 plus savings into a high-yield savings account.
01:25By the end of the year, I earned over $400 just letting my money sit there. And with higher rates
01:32today, I'd be making closer to $1.700, $800. That's way better than $187. This small switch
01:40taught me something big. Sometimes, the easiest wins come from simply knowing where to put your
01:46money. So, what's a high-yield savings account? It's basically a regular savings account, but
01:52on steroids. A HESA can earn 300 to 400 times more interest than your regular account with a 0.01%
02:00interest rate. Instead of losing money to inflation, your emergency fund actually grows. And here's the
02:08cool part. You can open more than one. Some of my friends have one for vet bills, one for travel,
02:14one for future house stuff. And yes, they're safe. As long as they're FDIC-insured,
02:20your money is protected up to $250,000. If the bank collapses, your money is still covered.
02:28Unlike stocks, your balance doesn't go up and down. No drama. No risk of losing money. Sure,
02:35the interest rate might fluctuate, but your balance doesn't shrink unless you withdraw. This is why I
02:41like keeping my emergency fund in a HESA. It's boring, and that's kind of the point. Also,
02:47most of these accounts have no or low fees. You keep what you earn every last cent. Just to clarify,
02:54a HESA is not the same as a CD, Certificate of Deposit. HESAs don't lock your money away.
03:01You can access it when you need it, which is crucial during emergencies. HESAs are for short-term
03:06savings. I keep my long-term savings in CDs or retirement accounts. But if I need money quickly,
03:13it always goes into a high-yield savings account. And remember, a HESA isn't a checking account.
03:19No swiping at Trader Joe's. No ATMs. You'll usually need to transfer money out, which takes a day or two.
03:27And honestly, that's a good thing. You want your emergency fund to be available, but not too
03:32available. If it's easy to swipe, it's easy to spend. HESAs are like fire alarms. You only break the
03:39glass in case of emergency. Let's talk about the actual accounts.
03:44One Live Oak Bank. Live Oak Bank has been around since the early 2000s. Not ancient,
03:51but established enough to trust. It's earned praise from Bankrate, Wall Street Journal,
03:57NerdWallet, and has a 4.6 star rating on Trustpilot. That's impressive, especially when many big banks
04:04can't break two stars. They offer 4.4% APY, whether you've got $1 or $100,000. No gimmicks,
04:13no hidden fees, no maintenance charges. Support calls are reportedly resolved in under a minute.
04:19If you want full-service banking, this might not be for you. But for focus savings, it's one of the
04:24best out there. Two, CIT Bank. CIT requires $100 to open an account. But really, that's less than
04:32most people spend on coffee and Uber Eats in a week. That $100 gets you a 0.25% APY to start,
04:40already way better than 0.01% from big banks. At $5,000, it levels up to a 4.1% APY. CIT also offers
04:51solid mobile access and features all under one roof. No activation fees. No monthly service charges.
04:583. Barclays. A familiar name, Barclays offers a 4.1% APY with no minimums and no fees. They match
05:08CIT's higher tier without needing $5,000. If you deposit more than $250,000, you even get bumped up
05:16to 4.3%. This is great if you're saving for a house or a big goal, not retirement, but a safe parking
05:23spot for growing your money. 4. Axos Bank. Great for small business owners. Their business savings
05:30account earns 3.8% APY. No minimum deposit, no monthly fees, no balance requirements. All domestic
05:38and international incoming wires are free. On the personal side, they offer 4.66% APY with access to
05:4695.000 plus fee-free ATMs. Again, no minimums or overdraft fees. Now, some honorable mentions.
05:56Not everyone chases the highest APY. Some people want a branch they can walk into or a smooth app
06:03experience. Capital 1360 Performance Savings. You can walk into a branch, talk to someone, and still
06:10earn decent interest. Not flashy, but stable and user-friendly. American Express High Yield
06:16Savings. If you're already an Amex user, this might be your lane. Offers 3.7% APY, no fees,
06:24no minimums, and FDIC-insured. Ally Bank. Great if you like organizing with multiple buckets in one
06:31account, one for vet bills, another for vacations, etc. Discover. Simple, reliable, and easy to set up.
06:393.6% APY with no fees. There are tons of other great HESAs out there, like Wealthfront, Genius,
06:47and SoFi. The whole point of this video is to make sure you get one, so Chase, Wells Fargo,
06:53and Bank of America don't keep taking advantage of your hard-earned money.
06:57Here's my general rule. Choose a HESA that gives you at least 3.5% APY, no weird fees,
07:04and solid customer support. Check the link below for the latest recommendations. Some of them may
07:10even offer a sign-up bonus right now. If you want my honest advice on reaching financial freedom,
07:15watch this video next.
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