If someone reading this is new to investing or savings, I highly recommend starting out with opening a High Yield savings account.

My mother put me on to this a few years ago and I wish I had known more about this sort of thing when I was in my 20s.

You'll get around 4% back compared to your traditional banks that offer a fraction of that. There is zero catch with this. I've opened several accounts which were all free and I use an account for a different idea/project. It's helped me tremendously.

Around the new year, I'll be adding a 5th account for saving/purchasing next year's Christmas gifts. Putting around $30 a month in my "Christmas savings" so that I can pay for gifts with cash and not have to pull money from anywhere else.

Ill recommend "Synchrony" do a quick Google search, download their app. I initially used them for a c.d but c.d rates have plummeted.

Using Synchrony or any high yield will help combat inflation. If you're using a traditional savings, you're actually losing money long term via inflation.

I hope this helps someone

I don't mean to be a jerk, but I'm fairly sure everyone on this board is aware of their existence.

This is sort of like going to the Entertainment Board and recommending people check out Star Wars.

What is this "star wars" you speak of?

Brian Earl Spilner said:

---

I don't mean to be a jerk, but I'm fairly sure everyone on this board is aware of their existence.

This is sort of like going to the Entertainment Board and recommending people check out Star Wars.

---

Go easy, he's class of 1926. Word travels slowly in that generation. The real story here is that his mother is still with us.

Brian Earl Spilner said:

---

I don't mean to be a jerk, but I'm fairly sure everyone on this board is aware of their existence.

This is sort of like going to the Entertainment Board and recommending people check out Star Wars.

---

I work with people who have no clue on high yield savings. I assume everyone here does but someone making the trip over here out of boredom may not

I didn't until I did

Aggie Dad 26 said:

---

Brian Earl Spilner said:

---

I don't mean to be a jerk, but I'm fairly sure everyone on this board is aware of their existence.

This is sort of like going to the Entertainment Board and recommending people check out Star Wars.

---

I work with people who have no clue on high yield savings. I assume everyone here does but someone making the trip over here out of boredom may not

I didn't until I did

---

I'm not going to mock you. It's good information and most of America is financially ignorant.

Wait until you discover HSAs!!

For me there is a catch, and that's an extra savings account to remember to save the password for and any time or mental energy spent dealing with it. If you already have after tax savings you are doing at Fidelity/Vanguard/etc just use their money market account. Unless you have substantial cash saved for something and then it might be worth it to chase the extra 1% temporary teaser rate somewhere.

Generally I find taking that energy chasing 1% extra on sub-six figure cash holdings to be better spent on investing in yourself by reading a book, improving your health, focusing on your career, spending time with family, or most any other self improvement.

I think there is a difference between what OP is making people aware of and a lot of the other "duh!" type stuff. Though if someone found their way to this forum they probably already have a decent idea.

A *lot* of people that have accounts at these big branches - sometimes created decades ago - that don't realize they aren't the same as every big brick and mortar bank out there.

A big part of the reason Bank of America savings account interests are as ridiculously bad as they are - they've determined the number of people who don't know any better and will just leave their funds in "the bank they've always used" savings at 0.05% outweigh the number of people that will jump to a 3-4% account at another bank.

Dr. Doctor said:

---

What is this "star wars" you speak of?

---

OldArmyCT said:

---

Proposition Joe said:

---

I think there is a difference between what OP is making people aware of and a lot of the other "duh!" type stuff. Though if someone found their way to this forum they probably already have a decent idea.

A *lot* of people that have accounts at these big branches - sometimes created decades ago - that don't realize they aren't the same as every big brick and mortar bank out there.

A big part of the reason Bank of America savings account interests are as ridiculously bad as they are - they've determined the number of people who don't know any better and will just leave their funds in "the bank they've always used" savings at 0.05% outweigh the number of people that will jump to a 3-4% account at another bank.

---

Bank of America owns Merrill, bankers get compensated for referring customers to Merrill. A lot of branches have a Merrill rep in them, those reps are trained to handle low dollar customers and those inclined to invest on their own. I'm a BoA/Merrill client and the latter has a money market paying +4%. The impediment though is the entry bar. They, and their big bank clones, cater to $$'s.

---

There's tons of HYSA banks out there paying 4%+ with no entry requirement. Dont need to be a big money guy to take advantage of these accounts.