Ally Bank

Did you know that your savings account could be paying you money every month? I have two savings accounts. One paid me $0.07 in interest last month. The other paid me $75 in interest.

The average savings account pays 0.01% in interest. In my case that’s about 55 cents a year. On the other hand, a high yield savings account can pay up to 5% interest. Currently, my HYSA has paid me over $2,200 in interest this year, and it has an APY of 4.25%. Disclaimer: My Ally account has much more money in it, but that doesn’t make a huge difference. Also the APY can fluctuate multiple times in a year depending on the economic market.

The more money you have in your HYSA, the more money you make in interest. The lesson: I automate my monthly savings so that 35% of every paycheck is directly deposited into my Ally account. Then, the interest just rolls in!
114w
Thanks for sharing! I started researching and found an account with 4.25%. I didn’t realize you had to pay taxes on the earned interest though. I don’t have enough savings to put me into another tax bracket (yet 😏), but do you have any input on filing the earnings? Does the bank send you the form? IRS can make things seem too good to be true, has it impacted you negatively? Such as having to pay more back so the interest earned isn’t worth it