Personal Finance

High-Yield Savings Account

Also called: hysa

A savings account that pays much more interest than a normal bank account.

A high-yield savings account is where your emergency fund and short-term cash belong: safe, insured, instantly accessible, and paying real interest. It will not make you rich, but it beats letting cash sit at near-zero in a big-bank checking account.

For example

Keeping a $15,000 emergency fund in an account paying 4% earns about $600 a year, versus almost nothing in a typical checking account.

Related terms

Emergency FundAPR (Annual Percentage Rate)

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