High yield savings accounts: are they actually safe or too risky?
I'm wondering if high yield savings accounts are actually safe. I've heard that FDIC insurance covers up to $250,000 per depositor. I've also heard that rates are variable and can change. I've also heard that they're much safer than investments. I'm wondering if I should trust HYSA with my emergency fund.
The thing that concerns me is that I've heard about inflation impact and lower long-term growth. I've heard that HYSA is safe if the bank fails but rates can drop. I'm also wondering if I should worry about the bank's stability. I'm trying to figure out if HYSA is actually safe for my emergency fund.
Are HYSA really safe? What about FDIC insurance? Can I lose money? What about rate changes? Should I worry about bank failures? Have you used HYSA? What worked? Would you recommend it? Should I use HYSA for emergency fund? I'd appreciate advice about HYSA safety.