A HYSA, or high-yield savings account, is a type of savings account that pays a higher interest rate than traditional savings accounts. Generally, a HYSAs interest rate is 15 to 20 times higher than a traditional savings account, and the national average interest rate on a savings account is 0.06%, meaning a HYSA will usually yield 0.9% to 1.2% interest. HYSAs are a good option for almost everyone with savings, including people who are building an emergency cash reserve, those working towards goals like paying for a vacation or purchase, and individuals who are saving for life milestones such as a down payment on a house or wedding.

Some key features of a HYSA include:

• Accessibility: The cash in a HYSA is accessible, with some limitations, unlike other growth accounts at the bank.
• Growth potential: The growth potential and the accessibility of the cash within the HYSA make it an attractive option for many.
• Minimum balance requirements: Some HYSAs have minimum balance requirements, and if the balance falls below that amount, the account holder may be charged a fee.
• Interest rates: The primary advantage of HYSAs is their higher annual percentage yields (APYs), so its important to make sure any bank youre considering offers competitive rates.

HYSAs are offered by most large national banks, credit unions, and even smaller local banks, and you may also open a new account through an online bank with no physical branches. Some online banks pay more interest because they lack the additional expense of brick-and-mortar branches.

In summary, a HYSA is a savings account that pays a higher interest rate than traditional savings accounts, making it an attractive option for those looking to grow their savings. HYSAs are accessible, have growth potential, and are offered by most large national banks, credit unions, and even smaller local banks.