At this point, we know that keeping your cash in an envelope stashed under your mattress isn’t the best idea. Primarily because there is an invisible threat that chips away at the value of your mattress cash. It doesn’t make any noises or alert you that your cash is losing value, it just slowly takes away 2% of it’s value on average.

If it’s not clear I’m talking about inflation and we peaked recently at 8.8%. That really makes it tough to choose to keep cash on hand that we need to have for emergencies, investing, or other unexpected expenses. So what are our other options? If we’re talking about keeping your money liquid while also finding a higher rate than your typical checking or money market savings account it’s going to be a good High-Yield Savings Account or HYSA.

What is a high-yield savings account?

A high-yield savings account is a type of federally insured savings product that earns rates that are much better than the national average. They can earn around 3% APY. By comparison, the national savings average is 0.30% APY.

If your money is in an account that earns a strong rate, your balance will grow faster without any additional effort on your part. With a 3% APY, a savings balance of $10,000 would earn a bit more than $300 after a year. It may not make you rich, but the earnings are much better than an account with a 0.30% APY, which would earn about $30 dollars.

How did I choose my favorite High-Interest Savings Accounts?

I kept this really simple based on what I’m using this for – quick, easy access to cash that earns more interest than just leaving it in my savings account.

• Does it offer the highest rate? Look for accounts that have high interest rates and low service charges. You want to make sure you don’t have to pay a fee each month. Some institutions don’t charge monthly fees, while others do but will waive them if you meet a balance minimum.

• Is it easy to access? An easy app and ability transfer is all I’m looking for. With online banking, you can access your account securely day or night. Online banks, credit unions and nonbank providers offer some of the best savings rates on the market while charging fewer fees than traditional banks. They also often offer good websites and mobile apps that typically let customers deposit checks and pay bills.

• Is it FDIC insured? FDIC or the Federal Deposit Insurance Corporation insures HYSAs at banks up to $250,000 per depositor. Accounts at banks are backed by the Federal Deposit Insurance Corp., while credit union accounts are backed by the National Credit Union Administration. This means that even if the financial institution fails, the government makes sure your money is safe and accessible.

Highest High-Yield Accounts with no minimum:

• Primis Bank – 5.03% APY
• BankPurely – 4.45% APY
• MySavingsDirect – 4.35% APY
• Bask Bank – 4.25% APY
• UFB Direct – 4.21% APY

My two favorite High-Yield Savings Accounts

I currently use Ally and Yotta. Ally has been my go-to HYSA since I started investing in real estate primarily because of the access and customer service. Yotta is a new contender with a chance at higher rates than anything you can find.

Yotta – Prize Linked Savings

Saving can be boring. There’s no short-term reward. On the other hand, something like the lottery provides immediate hope, excitement, and fun.

Yotta fixes this problem by making saving instantly fun while also offering better economic value than most savings accounts. With Yotta, you get the chance to win big just by saving. So even in weeks where you don’t win a prize, your money still grows, instead of disappearing like in the lottery. Yotta pools together a portion of the interest from high value banks and offers it via prizes through daily number draws.

I’ve seen some decent returns from my Yotta account, but the average APY is approximately 2.7%. Unless you’re one of the daily winners that pull in the $20,000 check most likely beating returns of anything you could come close to.

Ally

 Ally Bank is often considered one of the best high yield savings accounts because it offers a competitive interest rate, has no monthly maintenance fees or minimum balance requirements, and is FDIC-insured. 

Additionally, Ally Bank offers a variety of account options, including traditional savings accounts, money market accounts, and CDs, which allows customers to choose the account that best suits their needs. They also offer excellent customer service with 24/7 live customer support, and they have a variety of options to access your account, including online, mobile and ATM access. Overall, Ally bank’s combination of competitive interest rate, no fees and easy accessibility make it a great choice for a high yield savings account.

As you can see a slightly lower interest rate for me is okay if I have better customer service or opportunities outside of the ‘normal’ HYSA account. Cash is always good to have accessible but you don’t have to let all of its value erode in a checking or standard savings account. Find yourself a good HYSA.