Hello, dear community!
The other day, I was hosting a personal finance workshop for a school that hired me to educate adults and teens on this valuable life skill.
As I prepared my session on the importance of saving money and emergency funds, I was reminded of how incredibly powerful High Yield Savings Accounts (HYSAs) are.
In addition to keeping our money 100% safe (risk-free), HYSAs generates generous interest rates that put traditional banks to shame!
I’ve mentioned this story before, but I opened my first official savings account in 2005 with a big blue bank (that’s still around today).
At the time, the interest paid on savings was 0.01% APY
Fast forward 20 years later, and guess how much they’re paying on savings.
**drum roll please***
You guessed it— 0.01% APY
Let me show you a clear and eye-opening example of what this means.
Let’s say that you have $10,000 in your savings account. This is money that you are saving for emergencies or short-term financial goals you want to accomplish within the next 3 years or so.
It can also be money you want to keep “readily available” and risk-free for anything that might present itself.
Now, let’s say you deposit that money at your local bank, where they’re paying you 0.01% interest or something close to that.
Here’s how much interest those $10,000 will generate after 1 year:
~$2
Yes. TWO DOLLARS.
Now, let’s say that instead of doing that, you deposit that money in a High Yield Savings account, paying you around ~3.65% of interest (the ballpark some HYSA are currently paying). Here’s how much interest those $10,000 will generate after one year:
$365!!!
That’s money that will generate without lifting a finger.
I will take over $350 in passive income vs. $2 anyday.
That’s just ONE year.
As that money compounds year after year, it grows into the thousands instead of the pennies brick-and-mortar banks constantly get away with.
It’s truly mind-blowing.
When we know better, we do better!
One of my favorite high-yield savings accounts for the past several years has been Marcus by Goldman Sachs.
Marcus is currently paying 3.65% APY. There is no minimum deposit required which means you can start saving with any amount. No excuses!
Like all reputable banks, Marcus High Yield Savings Accounts are held to higher standards and levels of integrity. They are regulated and insured and offer higher levels of protection for all their customers.
There’s no excuse not to have your money working harder for you.
Note: The Federal Reserve (Fed) is the entity of the government that regulates interest rates. The interest we get might change slightly depending on what the Fed decides to do this year. However, HYSAs will always pay exponentially more than traditional brick-and-mortar banks. Keep that in mind!
And that’s all for today’s edition!
Reply to this email if you have any questions, thoughts, or feedback.
I always love hearing from our community.
Cheers to health and profits,
Mabel
Courses and Resources:
Exciting news: Registration for the Spring 2026 edition of our Investing Bootcamp for beginners will open soon! Get on the waiting list to receive full details including the promotional rate. See you inside!
