How do HYSA’s work? For example, if I open w Marcus, is the 3 or 4% interest temporary? Are there penalties to taking money out?

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An HYSA typically pays interest at the end of each month. For Marcus specifically, you get 4% for 3 months if you sign up with referral and 3% after, which ends up as 3.25% your first year. HYSA do not have penalties for withdrawing; it's fully liquid. You may be thinking of a CD which does have penalty (Marcus and many major banks offer these). The HYSA rate can change at anytime.

You are better off going with a bank that (1) gives a higher rate and (2) gives a sign up bonus. I'm a huge fan of Sofi; it gives 3.5% interest and a $275 sign up bonus if you sign up with a referral and connect direct deposit. Plus you get your paycheck 2 days early. I moved all my Marcus funds over.

Yup exactly but in the current environment it really doesn't make sense to lock in rates. Interest rates are rising.

There is very little chance that the delta is so large that the HYSA bonus won't cover it, unless again, you have a ton of cash for some reason. In which case you probably aren't maximizing the returns. Ibonds at 6%~ and tbills at 4%+ with no state/local tax are my first thoughts.

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