HYSAs are great but remember that when the fed starts cutting rates, the interest paid by HYSAs will fall too. Keep an eye on what brokerages will be paying in their money market accounts too.
I have both and Marcus. Ally for just because savings, SoFi for my emergency fund and Marcus for travel. All are automated, none are my main acct. 3 works for me even if it seems excessive. I like to see my money increase in different accts. Also, you can set up auto splits in SoFi. You can create a vault (similar to Ally’s buckets) and have money directed from the savings to the vault
Oh that's awesome! Out of the three which is your favorite? and curious as to why neither are your main account too? I know someone mentioned that in the comments as well.
@@krystalmaya_ I personally like SoFi. It makes it easier to see my money (not sure that makes sense). But also, deposits/withdrawals process quicker than Ally or Marcus. Neither are my main acct because I rather use a brick and mortar bank for that. It works for me. Automating money into each of those accounts helps me big time.
Thanks so much for sharing your insights, Krystal! I don’t have a HYSA, so hearing about your experience with these banks is super useful in understanding what I’m looking for
I have used both Ally and SOFI for my online bank. When interest is earned in buckets and vaults, SOFI gives interest to each individual vault, but I don't believe Ally does not give it in each bucket. Ally has been around for a while and feel more secure as having them as my online bank. I am 63 and maybe from the old school. Ally is my 2nd bank with online access and have a local credit union for my main banking. Great video!!!
Really liked the way you made the comparisons. I personally have Ally and I agree 100% that it’s way easier to navigate through the app. One thing I was hoping you mentioned for those that might be interested in doing it was investing with Ally brokerage. 👍🏽
With SoFi, in order to get that 4.6%, you MUST set up direct deposit which for most people will come from an employer. There is no minimum amount required which means you can designate a little portion of your paycheck to be direct deposited into your SoFi account. A qualifying direct deposit is any ACH deposit from your employer, payroll provider, benefits, provider, or certain other government entities, such as Social Security. If you don't have any of this for direct deposit, then you'll get 1.2% APY on your savings account instead of the 4.6%.
@@krystalmaya_ With SoFi, in order to get that 4.6%, you MUST set up direct deposit which for most people will come from an employer. There is no minimum amount required which means you can designate a little portion of your paycheck to be direct deposited into your SoFi account. A qualifying direct deposit is any ACH deposit from your employer, payroll provider, benefits, provider, or certain other government entities, such as Social Security. If you don't have any of this for direct deposit, then you'll get 1.2% APY on your savings account instead of the 4.6%.
@@elazotadordepiperos5299 @iamchristianm - deleted my reply because christian is right you do need to set up a direct deposit to get the highest APY - you can read more here support.sofi.com/hc/en-us/articles/4423866727949-How-do-I-get-the-highest-savings-APY
@@iamchristianm thanks for catching that!! For some reason I assumed it was similar to ally and it's not. Thanks for the correction there and keeping me honest.
It is true that these type of saving account generate more taxes? So at the end of year I will be paying taxes for all these 4.20% or somenthing interest? So all the money that I will receive is going to be in vane? *Hysa tax*
I don't know if the correct term would be "generate more taxes". But having a HYSA does increase your taxable income and how much your taxed depends on your tax bracket. For example: Let’s assume you have $10,000 in a HYSA with a 4.20% annual interest rate: Interest Earned: $10,000 x 4.20% = $420 per year. Tax Liability: If you are in the 24% tax bracket, the tax on the interest would be $420 x 24% = $100.80. Net Interest After Tax: Net Interest: $420 - $100.80 = $319.20. So even after paying taxes, you’re still better off than if you hadn’t earned any interest at all. Hopefully that makes sense! Also I'm not an expert tax person, but that's how i understand it
HYSAs are great but remember that when the fed starts cutting rates, the interest paid by HYSAs will fall too. Keep an eye on what brokerages will be paying in their money market accounts too.
Great point!
True but the HYSA rates will still be more than a regular saving account like my Chase 0.01% and Citibank 0.03%
I have both and Marcus. Ally for just because savings, SoFi for my emergency fund and Marcus for travel. All are automated, none are my main acct. 3 works for me even if it seems excessive. I like to see my money increase in different accts.
Also, you can set up auto splits in SoFi. You can create a vault (similar to Ally’s buckets) and have money directed from the savings to the vault
Oh that's awesome! Out of the three which is your favorite? and curious as to why neither are your main account too? I know someone mentioned that in the comments as well.
@@krystalmaya_ I personally like SoFi. It makes it easier to see my money (not sure that makes sense). But also, deposits/withdrawals process quicker than Ally or Marcus.
Neither are my main acct because I rather use a brick and mortar bank for that. It works for me. Automating money into each of those accounts helps me big time.
@@nomaam5891 that makes a lot of sense thanks for sharing your perspective (:
Thanks so much for sharing your insights, Krystal! I don’t have a HYSA, so hearing about your experience with these banks is super useful in understanding what I’m looking for
hiii i'm so happy you found this helpful (:
Love this! I have been wanting to open an HYSA for my son so this is super helpful!
#bestmomaward!!!
I have used both Ally and SOFI for my online bank. When interest is earned in buckets and vaults, SOFI gives interest to each individual vault, but I don't believe Ally does not give it in each bucket. Ally has been around for a while and feel more secure as having them as my online bank. I am 63 and maybe from the old school. Ally is my 2nd bank with online access and have a local credit union for my main banking. Great video!!!
Oh interesting i didn't know that about the buckets! Thank you for sharing and watching!
Really liked the way you made the comparisons. I personally have Ally and I agree 100% that it’s way easier to navigate through the app. One thing I was hoping you mentioned for those that might be interested in doing it was investing with Ally brokerage. 👍🏽
yay! I'm glad you agree!! how do you like the ally brokerage?
It is a must to set the direct deposit to get the APY?
@@krystalmaya_ oh great but the highest APY?
With SoFi, in order to get that 4.6%, you MUST set up direct deposit which for most people will come from an employer. There is no minimum amount required which means you can designate a little portion of your paycheck to be direct deposited into your SoFi account. A qualifying direct deposit is any ACH deposit from your employer, payroll provider, benefits, provider, or certain other government entities, such as Social Security. If you don't have any of this for direct deposit, then you'll get 1.2% APY on your savings account instead of the 4.6%.
@@krystalmaya_ With SoFi, in order to get that 4.6%, you MUST set up direct deposit which for most people will come from an employer. There is no minimum amount required which means you can designate a little portion of your paycheck to be direct deposited into your SoFi account. A qualifying direct deposit is any ACH deposit from your employer, payroll provider, benefits, provider, or certain other government entities, such as Social Security. If you don't have any of this for direct deposit, then you'll get 1.2% APY on your savings account instead of the 4.6%.
@@elazotadordepiperos5299 @iamchristianm - deleted my reply because christian is right you do need to set up a direct deposit to get the highest APY - you can read more here support.sofi.com/hc/en-us/articles/4423866727949-How-do-I-get-the-highest-savings-APY
@@iamchristianm thanks for catching that!! For some reason I assumed it was similar to ally and it's not. Thanks for the correction there and keeping me honest.
It is true that these type of saving account generate more taxes?
So at the end of year I will be paying taxes for all these 4.20% or somenthing interest? So all the money that I will receive is going to be in vane?
*Hysa tax*
I don't know if the correct term would be "generate more taxes". But having a HYSA does increase your taxable income and how much your taxed depends on your tax bracket. For example: Let’s assume you have $10,000 in a HYSA with a 4.20% annual interest rate:
Interest Earned: $10,000 x 4.20% = $420 per year.
Tax Liability: If you are in the 24% tax bracket, the tax on the interest would be $420 x 24% = $100.80.
Net Interest After Tax: Net Interest: $420 - $100.80 = $319.20.
So even after paying taxes, you’re still better off than if you hadn’t earned any interest at all. Hopefully that makes sense! Also I'm not an expert tax person, but that's how i understand it
@@krystalmaya_
Thanks
❤❤❤
thanks mom!
Neither should be your main account but Ally is better imo.
ouuu interesting! would love to hear more about why neither should be your main account.
How
What should be your main?
Still waiting to hear why they shouldn't be your main banking.
@@doneagle19 same