How to open a high yield savings account in USA | What is High Yield Savings Accounts merits and demerits

when I signed up for my first high yield signals account I honestly did not know what to expect but over the years I've learned three important lessons that I'm going to be sharing with you here today that I don't see a lot of people talking about so after this you're going to be better prepared when you sign up for your high yield savings account.

Than I was five years ago let's start with number one and that has to do with taxes chances are if you have a high yield savings account you are going to be getting a 1099 int that will show how much interest income you earned now I wasn't used to this because at my old bank with my old savings account.

 I wasn't earning that much interest I think we were earning point zero one percent or point zero five percent and that brick and mortar bank that I had that savings account never earned enough interest for them to have to send me a 1099 int because if you do get 10 or more in interest on that savings account then you're going to be getting a 1099 int and that's why ? 

I never got that in the previous bank at the previous savings account and when we did transition over over to the high yield savings account that's when we started to see those 1099 int forms every year but listen interest earned in your high yield savings account is still a good thing the way I see it because that's money that I would have otherwise not been able to earn if I didn't have a high yield savings account taxes are a part of life especially. 

 when you're trying to build wealth and unfortunately your high yield savings account is not exempt from it so be prepared as you're seeing that interest as you're seeing that account earn money to put some aside for taxes just in case you may owe when you file your yearly taxes the second lesson that I've learned is that you just don't have to sign up for one savings account if you're seeing offers from different savings accounts.

 Banks companies you can sign up for multiple ones and take advantage of those perks and at the same time you'll be able to try the different companies to see which you like and that way you just don't have to get tied into one savings account this is a strategy that I'm seeing more and more people start to use especially if they can get get a 250 dollar signing bonus from this bank and a hundred dollar signing bonus at another bank.

 why not just make sure that you are paying attention to the requirements you have to meet to get those bonus payments and to get those perks number three don't expect that interest that yield that you're earning on your high yield savings account to stay the same the interest rate that you see today being advertised is not going to be the same a year from now or even a few months from now so that's why I choose not to spend the money in my hysa like it's normal consistent income the four to five percent apy that you may see today will eventually come down it's going to come down eventually so don't put yourself in a financial obligation based on the interest, 

 that your high yield savings account is earning or you could be in financial trouble later and if you are in a position right now where you're trying to get out of financial trouble or if you are trying to get to financial Independence something that I talk about on this channel well check out the video on the screen and learn about the Seven Pillars of financial Independence and I'll see you over there peace.