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Well I am glad I don’t see people writing about “high yield savings accounts” as often I see that copy pasted from old tutorials on basic investing. Maybe I am
by ozim 2y ago
Well I am glad I don’t see people writing about “high yield savings accounts” as often I see that copy pasted from old tutorials on basic investing.
Maybe I am wrong but I don’t think there were any “high yield” savings accounts for at least a decade or even more.
All savings accounts I see are mostly below inflation or around the same. Where high yield for me would be at least 1% or 2% above inflation.
- pitaj 2y agoInflation is now below 3%. HYSAs are above 4% right now, so are beating inflation by a good margin. Of course, changing interest and inflation rates can change that.
- tazu 2y ago> Inflation is now below 3% Officially.
- dmoy 2y agoIn the long run you aren't going to be beating inflation by 2% with your cash or equivalent (CDs, treasuries, repo, whatever). That's in the 0-1% above inflation range, and likely on the lower end of that scale. Even intermediate or longer term bonds struggle to get 2% real returns. But yea, "high yield" is a misleading name for savings accounts, and there isn't a huge point to it now, especially after the liquidity rules on government money markets got tighter after dodd frank. There is still one benefit to having at least a month or two of expenses in a savings account though - FDIC. In an emergency that also crashes your bank, FDIC turnaround is like one business day. SIPC exists for brokerage holdings, but it is glacially slow by comparison.