Know THIS Before You Open a High Yield Savings Account

42 Comments

1. ✅ WATCH NEXT: What You Should Know About Health Savings Accounts (HSA) Before You Open One https://youtu.be/8e2H8DOjaiQ

2. I have a HYSA with Capital One. Their interest rate is 3.1% so I stand to have a little over 4k in interest. That $4000 will be taxed at my federal income tax rate which is for me is 24% so 24% of that $4000 will go to taxes.

3. Interest earned is income. Hasn't changed in my lifetime.

4. Bro now I don’t even wanna open one can’t save money for nothing 😭😭

5. Is the taxes you have to pay based on the interest rate like if you have a really high and awesome interest rate, are you gonna have to pay an exuberant amount for taxes? Maybe that’s a silly question but I feel like I need to know.

6. This is literally nowhere online I’m 100% closing the acc I just opened yesterday

7. Great video, especially the part about making your cash work for you instead of letting it sit in a low-interest account. I've been looking into different high-yield cash account options recently and came across Tellus while comparing alternatives. Since you've covered a lot of savings and investing strategies here, I'm curious if you've looked into Tellus and what your thoughts are on using it as part of a broader cash management strategy?

8. 1:17 INCOME TAX IS NOT TAX!! IT'S INCOME THEFT!!

   Sir, you need to fight the problem not become a part of it.

9. Just in case nobody’s done their homework, federal income tax is ill legal and unconstitutional. You do not have to pay it so please do your homework. even the IRS will admit there is nothing in the laws or constitution that says you have to pay federal income tax .

10. OK, you pay taxes on the interest. So what? Tell you what, *don't* get a HYSA and *don't* pay taxes on the income you *don't* get.

11. I love the strategy of opening a couple and seeing which one you like!

12. So wait how much not to save over in there to not have to file tax on it ??

13. Thanks for the info. I just started one this year.

14. I cant win. Just opened one at 3.3% and started dumping all my savings from my b&m bank that was only at 0.01%😂

15. I have mine in tax free savings account with no interest

16. Aw man, Saving my money my way and not a penny to the irs.

17. Great so if they tax us what is the point? I hate the government!😢😢

18. I love how short and to the point this was. Thank you 🙂

19. Im too poor to be taxed

20. IRS is destroying us .

21. same with CD's or market shares….You will pay income taxes!!

22. Awesome Video: Short & Sweet w/ solid advice. You just earned another subscriber

23. Don't be scared. Most of us will not have enough money to really freak out on it

24. Thanks for sharing thorough information regarding taxes on HYSA accounts. I have listened to several HYSA YTs and unfortunately there's is no mention about HYSA Taxed. I'm glad this showed up in my YT feed.
    I'm now a new subscriber 🔔!

25. Typical america, making sure they get their cut of any and all our money

26. Before opening a HYSA, know this: rates can change, some accounts have transfer limits, and apps vary in ease of use. ✅ Still, they’re FDIC-insured and super safe. Banks like Ally, CIT Bank, Synchrony, and SoFi often offer strong rates, and BankTruth helps you compare the best of them.

27. How do I know how much to put aside for taxes?

28. If I open one as a 12 year old will i have to pay taxes?

29. Taxes are the reason I don’t put more than $20 on HYSA a month 😭

30. So if i put 100k in one of these 3% rates will i really get 3000 a month or a year?

31. This is how I look at it.Even if you have to pay taxes on the interest earned…its still way better than the 0.01 % interest some banks are paying on a traditional savings account.

32. Dude, you're awesome! This is the stuff people need to know. I watched so many videos on this and almost no one mentioned this. Thank you!

33. Taxing is not apart of life!

34. Look at all these math experts. Even if taxed, you are still making more money than having in a traditional bank

35. I mean, you should probably not be using HYSA interest as passive income unless you know how to leave some aside. Big rule, don't use the interest until after December. Keeps you ready for tax season and once taxes are done you now have that money to re-invest

36. This is a great video, everything clearly and briefly explained. Thank you! Sharing with others.🧡

37. So cash app really has a HYSA??

38. This is not accurate you do not have to file a 1099 for any One source annual income under $600…(599.99)

39. Good stuff – THX!

40. Thanks for the info

41. link to the nerdwallet document?

42. Question should I put my direct deposit on my savings ?