How You Save Like the Rich? High Yield Savings
- yourblasianfinance
- Oct 13
- 2 min read
Updated: 7 days ago
Tired of seeing your bank account balance stay stagnant? Me too. For the longest time, I thought "saving money" just meant having money sit there, collecting dust and maybe, if I was lucky, earning $0.05 in interest for the year. That's broke life thinking.
The rich don't just "save" money; they make their money work while they sleep. And their secret weapon? It’s not complicated. It’s a High-Yield Savings Account (HYSA).
What Even Is a HYSA?
A High-Yield Savings Account is just a savings account, but it pays you way more interest than your average big-bank account.
Big Bank (like the one you probably have): Pays around 0.01% - 0.40% APY. Your money is barely crawling.
HYSA (Ally, Marcus, etc.): Pays 4.00% - 5.00% APY or more. Your money is growing and getting paid to do it.
The difference is a result of HYSAs usually being entirely online, meaning they have way less overhead (no fancy brick-and-mortar buildings) and can pass those savings on to you in the form of higher interest rates.
What is APY? Why Should I Care?
The Annual Percentage Yield (APY) is the actual return you get on your money over a year, including compound interest.
Compound interest is the real MVP. It means the interest you earn this month starts earning interest next month. It’s a snowball rolling down a hill—it just gets bigger and faster all by itself. Like credit debt, but it is actually good this time!
Example: If you have $5,000 in a normal big bank at 0.01% APY, you earn about $0.50 per year.
If you have $5,000 in a good HYSA at 4.50% APY, you earn about $225 per year.
That is $225! Do you know what I can do with $225!?
Money you earned just for moving your savings to a better spot. That's how the rich think: always optimize for the highest return.
Your Two-Step Plan to HYSA Greatness
Ready to upgrade your savings? It's so easy.
Open an Account: You can open a HYSA online in less than 15 minutes. Great options include Ally, Marcus, and Discover. They have zero monthly fees and zero minimum balance requirements.
Move the Money: Link your existing checking account and transfer your emergency fund and any short-term savings (like money for a vacation or a new car) into the HYSA.
Don't let your money sit there and sleep anymore!
Talk to you later,
Ally - Your Blasian Friend
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