HYSA recommendations?

[clonechemist]

With current rates, we should park some savings in a HYSA. Seeing rates around 3-4% advertised for online-only accounts.

Anyone have experience with an HYSA provider that you would recommend or avoid? Any tips or issues to watch out for or consider?

TIA

 

[SCNCY]

I have a savings account with Ally, they seem to usually have interest rates above other banks consistently.

 

[isufbcurt]

I think my wife uses Ally.

We also used them tom refinance a couple years ago and got a crazy low rate.

I let her deal with our finances.

 

[baller21]

My Ally savings account is currently at 3.25%.

 

[Mead For My Horses]

I've used Live Oak Bank in the past. Very good personalized service (easy to get a human when needed). Their current rate is 3.10%. Since rates have moved up, I have my temporary cash in a Vanguard money market fund (VMFXX) currently yielding 4.20%

 

[cyfan21]

Capital one 360 savings is giving me 3.3%

 

[clonechemist]

Thanks for all the info. Since there’s not much commentary on convenience or features other than the rate, I’m assuming they are all fairly similar. With that said I’m planning to try Brio since they are at 3.75% right now.

 

[Turn2]

Are these FDIC insured or are they HY “SA”?

EDIT: Yes, at least in some cases.
Example: https://www.ally.com/bank/fdic/

 

[hiltonisheaven]

U.S. T-Bills (1 month) rate is 3.87% and exempt from state income tax.

1 Month Treasury Rate Market Daily Analysis: Daily Treasury Yield Curve Rates | YCharts

In depth view into 1 Month Treasury Rate including historical data from 2001 to 2025, charts and stats.

ycharts.com

 

[SCNCY]

Thanks for all the info. Since there’s not much commentary on convenience or features other than the rate, I’m assuming they are all fairly similar. With that said I’m planning to try Brio since they are at 3.75% right now.

Most banks should be able to sign up online, Ally is only online. If you cannot sign up for an account online, I'd run.

 

[Big Daddy Kang]

I signed up for this the other day: Discover Bank 3.3% + bonus of $150/$200 for deposits of $15K/25K. Seemed like it had the fewest strings attached and I already have their credit card (no complaints).

My credit union (Summit in Madison, WI) is apparently too busy empire building to pay much of anything for deposits (0.03%).

 

[ianoconnor]

Another Ally user.

 

[Pope]

We're planning to park some money in some 13-month CDs that Greater Iowa Credit Union is offering at 4.4%.

 

[JP4CY]

Another Ally person. They do a fair job of emailing about rate changes.

 

[CoachHines3]

With current rates, we should park some savings in a HYSA. Seeing rates around 3-4% advertised for online-only accounts.

Anyone have experience with an HYSA provider that you would recommend or avoid? Any tips or issues to watch out for or consider?

TIA

just go get a 3 or 5 year myga and get 5%

 

[CascadeClone]

U.S. T-Bills (1 month) rate is 3.87% and exempt from state income tax.

1 Month Treasury Rate Market Daily Analysis: Daily Treasury Yield Curve Rates | YCharts

In depth view into 1 Month Treasury Rate including historical data from 2001 to 2025, charts and stats.

ycharts.com

how does one invest in such an instrument? is there a UST account sign up system?

 

[Mead For My Horses]

how does one invest in such an instrument? is there a UST account sign up system?

If you have an online brokerage account you can do it there. Vanguard, Fidelity etc. Both those are good for people that don't have big bucks.

 

[cyphoon]

If you have an online brokerage account you can do it there. Vanguard, Fidelity etc. Both those are good for people that don't have big bucks.

Vanguard allows you to buy 1 and 2 month T bills if you want, but you can also just buy their VUSXX treasury fund. Current yield around 4%, and it has the same state income tax advantages as T bills. $3000 initial minimum.

Another option to look at is their federal money market fund: VMFXX. It currently yields around 4.2%, and is partially free from state income tax (the portion they invest in T bills)

H

 

[cyphoon]

Anyone have experience with an HYSA provider that you would recommend or avoid?

I have been an Ally customer for about 4 years and really like them. Before that, I used CapitalOne 360. They were ok, but the Ally rates have usually been a touch better.

I like having a portion of my emergency fund in a ladder of 1 year CDs (1 CD renews each month). Lately, I have been purchasing those through vanguard because I can get about half a percent better than Ally, but you have to understand more terminology (callable vs non-callable). I bought a non-callable 1 year CD at 4.75% last month.

Lastly, consider having a small portion of your taxable savings in a tax savvy mutual fund. Vanguard's Total Stock Market Index is sneaky good at avoiding taxes. It is also down about 20% for the year, so think about your risk tolerance.

H

 

[cyfanbr]

Another Ally user here