[Neha]

Hi everyone, with the interest rates on a downward trend for HYSA, what is your strategy next ?

Are you still keeping the money in it or investing somewhere else?

With high-yield savings account (HYSA) interest rates dropping, many of us are rethinking how to maximize returns on our savings.

What’s your next move? Are you sticking with your current HYSA, exploring other types of investments, or considering new strategies like bonds, CDs, or the stock market?

Maybe you’ve found a creative way to grow your savings that others haven’t thought of.

We’d love to hear your approach. Whether you’re a seasoned investor or just figuring things out, your insights could help others navigate this period of lower returns.

Share your thoughts, strategies, and any alternatives you’re considering as interest rates decline.

[Rick]

Cash moves to something similar to fidelity cash management accounts. Probably should have been here for a while.

Excess cash for last 18 months cries looking at hysa and money market and certificate of disappointment compared to your stock market asset mix.

This is common over time. Even as people wonder what happened.

[Blake]

I can only speak for me:
I see HYSAs as glorified savings account. I only save for specific purposes like emergency, travel, etc.

They are not meant to be investment vehicles.

I think it’s important to mention because so many people confuse the two.

If you want to invest, put your money in the market.

[Frank]

Just use a money market fund at your brokerage. You will always get a competitive rate.

Look, you should not be spending a lot of time and effort on a “strategy” for short-term savings or emergency funds.

If this is really meaningful for you, it means that you are hoarding too much cash that you should be investing for the long term.

You are doing it wrong.

This is like excessive couponing — yes, it makes you feel like you are “doing something”, but it is really not moving the needle and is a kind of “make-work” that a lot of otherwise good savers get involved with as a substitute for just opening a regular brokerage account and investing their excess cash.

[Cody]

My strategy for money I plan to spend within the next year is to prioritize stability and liquidity over growth and income.

A money market fund within my taxable brokerage account is a great option without any additional hassle.

[Justin]

I bought a couple 2y treasury bills over well 5% equivalent before rates drops

[Tom]

Now that it’s getting closer to my mortgage rate, I’m going to be moving a bit more from my money market to my mortgage.

[Arun]

HYSA or money market funds are usually for short-term needs (< 1 year) or emergency funds.

We fully accept that the interest will fluctuate and leave it in one place.

It’s just something better than keeping $ in a checking account earning close to 0%.

[Paul]

We don’t keep enough savings to change anything here. If you’re saving for something short term specific, bonds might make sense.

[Golden]

Same investment policy. No change. 3 years in cash…Vanguard money market. The rest for long term…. VTI, MGK, VGT.

[Cara]

I am not sure what your money in your HYSA is for but we moved some into a CD for now.

[Author]

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