this post was submitted on 19 Mar 2024
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[โ€“] [email protected] 3 points 8 months ago (1 children)

Also, most HYSA require a significant upfront investment ($1k+ all invested at once) in order to open an account in the first place. And as nice as 5% interest is, getting $10/year from it is pretty fucking irrelevant; it's only useful if you have a cool $10k+ to dump into it and forget.

[โ€“] [email protected] 4 points 8 months ago

5% of $1k is $50/year. and, generally speaking $1k in emergency savings is only the first tier savings goal. the next priority is to save 3-6 months of expenses depending on perceived job stability, which is where interest income starts to offset the cost of some cheaper utilities or a mid tier subscription add-on.

it's not really meant to provide some passive income so much as as it is an incentive to parking the savings somewhere. because the current interest rates on brick and mortar savings are butt cheeks. like 0.1% type crap.