This is the Ramsey Call of the Day, part of the Ramsey Network.

Our question of the day comes from Brent in Virginia. Here's what Brent is asking. What are your thoughts on high-yield savings accounts? Are they regular bank savings accounts? If so, which

ones do you recommend and do you have to file income tax on interest gained from them? These are

great questions, Brent. They really are. I feel like that's a hot topic lately. I know I get,

you wouldn't believe how many messages I get weirdly like per week of just people going, hey,

what's a good high yield savings account? account hysa and the reason is interest rates on those accounts have gone way up

yes i mean it was at you know back in 2019 i think you could get 2% on these accounts and then

it all went downhill to where you were getting half a percent.

And then all of a sudden in the last year, it shot up.

And so now you can easily get 3% or more on a high-yield savings account.

And here's what it is.

It is slightly different than a bank savings account.

They're both going to be federally regulated, both going to be liquid savings accounts.

High yield savings accounts usually just means these are online banks. And they have less overhead

because they're not brick and mortar stores. They have to, you know, staff for and build.

And so they can offer higher savings rates. So there's a ton of them out there.

I opted for the ally one. I mean, this is not

to push them for it. I mean, these are all banks and they're all products. We have no connection here

Ramsey to any of these banks. These are just kind of personal preference. I know Rachel's an ally

fan. I use one called Marcus. Yeah. And the key is make sure they are federally regulated so they're fdic that means they're insured up to

250,000 dollars per person on the account so that's one thing you want to look at the other one is

all the fees and all the minimum balances and transfer that and so you want to make sure you're

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