@dave1980 wrote:
Thanks! Please help me with answers for below.
Are HYSA account always FDIC insured ?
Is HYSA better than MMA ? If yes, why?
My local credit union offers HYSA. Is it better to go with them rather than online HYSA or MMA ?
HYSA are always FDIC insured. Usually up to a certain amount, per account. I think $250,000
No difference. Go with the higher APY. My LC Level Up 4.2% is a HYSA, my Sallie Mae 3.85% is an MMA, my primis Perks 3.7% is a HYCA. My SPAXX 3.77% 7 day yield is a Money Market Fund. Makes no difference. You can look into CDs as well, if you won't need the money for XX months.
I can't answer that. There would be convenience for you using your current CU. But what is the APY? My suggestion would be to go for the consistently higher APY, at a reputable, easy to use, no 'hoops' institution. A higher APY is usually (not always) at an on-line only bank.
Always keep a local brick and mortar hub CU or bank and link your online HY bank to your local bank. You can move money back and forth.
The benefit of a HYCA is you can use it to auto pay all your bills while keeping every dollar at a higher yield right up to the last minute that the bill is paid. As opposed to keeping the bulk of your savings in a HYSA, yet always leaving or early transferring enough money in to a 0.05% checking account to cover your auto bills. And you can write checks from it, pay with a debit card, and withdraw cash from an ATM. Does that make sense?
Good luck!
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