The financially wise person will usually tell you to keep those funds liquid in preparation for a rainy day (car breaks down, AC goes out, etc). Meaning, don't lock them away in investments where you can't easily access them or where they could lose money.
The only problem with this is that parking these funds in your checking or savings account usually yields very little interest. In fact, the currently advertised interest rate on my bank's savings account is 0.01%. Ha!
I realize this rate will fluctuate depending on interest rates and market conditions, but it leaves those of us with emergency funds looking around for better options.
Enter HYSAs. Heard of them? The acronym stands for High Yield Savings Accounts.
I'm constantly on the hunt for the best HYSAs and will gladly move my emergency fund around to get better rates.
One of my Favorite HYSAs is Marcus. No, that's not my banker's name - haha.
Marcus is a popular HYSA run by Goldman Sachs. I've found that it frequently has one of the best interest rates of the HYSAs out there.
It's where I have my emergency fund parked right now & I've used them for several years.
Currently their interest rate is 0.50%. Not great, but still 50x higher than my bank. It’s one of the top HYSAs out there. The rate goes up & down as market conditions change and it’s currently on the rise again. I've had my money in there with a rate as high as nearly 2% in the past.
I was going to tell you about this HYSA & then realized they offer a promotion where if I send you to them, you get a 0.2% higher rate than their advertised rate & so do I for a period of 3 months. Not too bad!
0.50% + 0.20% = 0.70% for 3 months?!? I'll take it! You can too! Hard to beat that rate right now!
If you have $25,000 in your emergency fund, that's an extra ~$137/yr. If you have $50,000, it's ~$275/yr & keeps going up depending on how much you put in there!
If you're looking for a good HYSA to make some extra money each month, try out Marcus & see what you think!
Below is my referral link where we both get a 0.2% increase for 3 months!