Hi all,
I have to admit I am pretty ignorant when it comes to a lot of things finance but I am trying to be better. With that being said – I am wanting to put some money into an account to have it grow over time. Would a HYSA be the best option for this? I am expecting my first child in August so hoping to start saving up for any large expenses that will come our way down the road.
It wont be a lot of money, probably 1k is all I would be able to put in there right now. I hope to be able to add some money each month but it would likely only be 100-200 dollars. I currently am just using a Chase checking/ savings account.
Any advice or information would be great! Than
Is a HYSA the best option for me?
byu/Agreeable_Music5402 inpersonalfinance
Posted by Agreeable_Music5402
3 Comments
You should replace your Chase savings account with a HYSA. Very good idea.
Yes it’s a great place for cash you expect to use in the next few years.
It’s not the best place for *long term* growth though. It’ll grow, but very slowly.
Follow this flowchart: https://i.imgur.com/lSoUQr2.png
HYSA for emergency or large purchase in the next 5-10 years.
Everything else goes into an ETF
You need to build an emergency fund. Around 6months expenses. This should absolutely be in a HYSA.
Do you also have retirement accounts setup?
You should get that started as well, if not.
With a kid, you’d also want to look into a 529. But you need your retirement in a good place first.