Just realized I was wrong about high interest savings accounts

I had this idea that savings accounts were a waste because the rates were always tiny. Then a guy at my credit union in Austin showed me a high yield one paying 4.2% APY. I dumped $2,000 in there just to see what would happen. After three months I earned almost $21 in interest, which is way more than my old account gave me in a year. That $21 felt like free money honestly, it just appeared. I also learned that these accounts let you pull cash out anytime without penalties, which I didn't know. Now I'm wondering if I should move my whole emergency fund over, has anyone else switched and regretted it later?

3 comments

3 Comments

hugo_robinson251d ago

Oh nice, 4.2% is solid! Moving your emergency fund there sounds like a no brainer.

milacraig1d ago

4.2%? Might as well call it a savings account at this point, @hugo_robinson25.

lee_reed1d ago

Haha "might as well call it a savings account" - exactly what I was thinking. I moved my emergency fund to one of these last month and honestly it feels like cheating. Getting 4%+ on cash you might need tomorrow is just too good to pass up right now.