A high-interest savings account (HISA) is a type of savings account that offers a higher interest rate than a regular savings account. It is designed to help money grow faster while still keeping funds accessible.
Key Features
- Higher returns: Interest rates are significantly higher than standard savings accounts, though they may vary over time.
- Accessibility: Funds are still liquid, meaning you can withdraw them when needed, but there may be transaction limits.
- Low risk: Like regular savings accounts, HISAs are typically insured up to a certain amount.
When to Use
HISAs are ideal for short-term savings goals such as emergency funds, vacation savings, or saving for a down payment. They provide better growth than standard savings without locking money away.
Final Thoughts
A HISA offers a balance between growth and accessibility. It’s a safe way to earn more interest on idle cash, but it’s not meant to replace long-term investments like stocks or bonds.