Maybe investing isn’t on the cards for you just yet, but you still want to make significant strides towards your financial goals. If so, here’s a quick money win you can do right now.

🥁 Drumroll, please… Open up a HYSA – a high-yield savings account.

Did you know that if you have money sitting in a regular bank account, it’s earning 0% interest? 😭 And if it’s in a standard savings account, you might be lucky to get 0.3% interest. 😢

Both of these options suck because they’re not beating inflation—the Mean Girl of Finance—that makes everything more expensive without your money growing to keep up.

Why Open a HYSA?

This section highlights why a high-yield savpings account is a smart move for your money.

• Beats Regular Accounts: Unlike checking or standard savings accounts, HYSAs offer much higher interest rates.
• Combats Inflation: With inflation driving up prices, your money needs to grow to maintain its value.
• Safe and Accessible: HYSAs are a low-risk way to grow your money while keeping it accessible.

Takeaway:

A HYSA helps your money grow faster, protecting it from losing value due to inflation.

Understanding Inflation

Let’s look at how inflation affects your purchasing power and why your money needs to keep up.

• Inflation Impact: In recent years, inflation levels in the US, UK, and Ireland have surged, making everything from your Starbucks coffee to petrol more expensive.
• Eroding Value: If your money isn’t growing, it’s actually shrinking in value because of rising prices.
• Work Smarter: You’ve worked hard for your money, so make it work hard for you by earning better interest.

Takeaway:

With rising inflation, your money needs to grow to retain its purchasing power.

How to Open a HYSA

Opening a HYSA is straightforward and quick. Here’s how to do it.

• Research: Use Google to search “top HYSA in [your country]” to find the best interest rates available.
• Compare Options: In the US, SoFi offers great rates. In the UK, check Money Saving Expert for the best options. Challenger banks like Revolut and Monzo also have competitive rates.
• Take Action: Schedule some time in your diary to set up your HYSA. It’s a quick and straightforward process that can help you make more money.

Takeaway:

Research and compare HYSAs to find the best rates and open an account to start earning more interest on your savings.

Common HYSA Mistakes to Avoid

Stay tuned for part 2 of this guide, where I’ll share the most common HYSA mistakes and how to avoid them.

Conclusion

Opening a high-yield savings account is a smart and simple way to ensure your money keeps growing and stays ahead of inflation. Don’t let your hard-earned cash lose value sitting in a low-interest account.

Stay financially savvy, Wealthy Witch! 💜
xo Laura

PS. I’m hosting a live Q&A and investing training that will help answer all your money questions. Click here to save your place.

FAQ

Q: What is a HYSA?
A: A high-yield savings account (HYSA) is a savings account that offers much higher interest rates compared to regular savings accounts.

Q: Why should I open a HYSA?
A: A HYSA helps your money grow faster, protecting it from losing value due to inflation and giving you better returns on your savings.

Q: How do I find the best HYSA?
A: Use online resources like Google, Money Saving Expert, or your local banking comparison sites to find the best interest rates available in your country.