Top Hacks for Getting the Most Out of Your HYSA as a College-Bound Teen
Maximize Your College Savings with Top Hacks for High-Yield Savings Accounts
Traditional savings accounts, to put it lightly, tend to offer a paltry interest rate. Really, they're just there to act as a virtual piggy bank, holding that cash until you need it, rather than offering perks. Luckily, there is something better: High-yield savings accounts (HYSAs). These offer much higher APYs than traditional savings accounts, as long as you meet the requirements.
Shop around for HYSAs
If there's one universal truth about banking products, it's this: You have to shop around to get the best deal. That's because every bank that offers a HYSA will have their own requirements to get that elevated APY, and some may offer more perks than others. So it's important to understand exactly what you're getting out of the deal before signing up. Make sure you can qualify for the higher APY, and that there aren't fees that will eat into your cash, then consider any other offered perks to narrow down your account search.
Keep the HYSA with a different bank
Assuming you already have a checking account, you should consider keeping that cash and your savings in separate banks. This will make it just a bit less convenient to access that saved money, allowing it to grow. Using two different banks might require you to initiate an online transfer that will take a day or two to go through, giving you more time to make important spending decisions.
Make a plan for that cash
Saving money is always a good idea, especially when you're earning a high interest rate. But you need to have a clear vision for how you'll use it if you want to make the most of it, and stay motivated. It's best to create an emergency fund and have financial goals that you want to save for. Be sure to figure out exactly how much each goal will cost and divide that by your timeline.
Embrace automatic transfers
Auto transfers can be a fantastic way to ingrain the habit of saving money. Select the amount you can realistically afford to automatically transfer from your usual account. This habit will set you up for long-term success and ensure your savings grow consistently.