High-yield savings accounts (HYSAs) are like super-powered savings accounts! They pay you much more interest than regular accounts. Think of interest as extra money the bank gives you for keeping your money with them. This is great for saving up for things!
- HYSAs offer higher interest rates (some above 4%), letting your money grow faster.
- You can easily access your money whenever you need it.
- Your money is safe up to $250,000 with FDIC insurance.
- It's best to save 3-6 months of living expenses in an HYSA for emergencies.
| Thing | Number |
|---|---|
| Average checking account interest | 0.07% |
| Average savings account interest | 0.41% |
| Some HYSA interest rates | >4% |
| FDIC insurance limit | $250,000 |
