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Users are curious about how high-yield savings accounts (HYSA) can offer higher interest rates than traditional banks and want to understand the mechanics behind it. They are looking for transparency on interest rates offered by savings apps.
This may be a dumb question but how are HYSA’s able to offer higher interest rates than banks? Is there some sort of catch I’m not seeing? HYSA’s are mentioned so often here I swear it sounds like they’re the answer to everyone’s financial problems.