High-yield savings accounts (HYSAs) are creating buzz in the business world, and for good reason! In this episode, Danielle Hayden, CPA and founder of Kickstart Accounting, Inc., dives into how high-yield savings accounts can help business owners make the most of their cash reserves. With action steps you can take today, Danielle lays out how to use HYSAs as a smart, low-risk tool for growing your money while still keeping it accessible. Have your money work for you as it sits in savings! 

Key Takeaways: 

• What is a High-Yield Savings Account (HYSA): Danielle explains how HYSAs differ from traditional accounts and why they’re a smart choice for short-term savings, earning you hundreds, or even thousands, of dollars in interest with minimal effort.

• Key Considerations When Choosing an HYSA:

• Transfer times: How long it takes to move funds back to your checking account.

• Transaction limits: Planning around monthly withdrawal caps to avoid penalties.

• FDIC insurance: Ensuring your money is protected.

• Common Pitfalls to Avoid: 

• Why your account name matters for proper accounting and legal compliance.

• The difference between business and personal savings and how to ensure you're staying tax-compliant.

• Action Steps:

• Open a high-yield savings account for your business if you haven’t already.

• Ensure your account is in the correct name (business or personal) based on your savings purpose.

• Review your current cash savings strategy and evaluate your options to choose an HYSA that aligns with your financial goals.

Topics Discussed:

What is a High-Yield Savings Account (HYSA)? (00:00:23 – 00:01:10)

Benefits of HYSAs for Business Owners (00:01:10 – 00:02:03)

Choosing the Right HYSA (00:02:03 – 00:03:30)

The Financial Impact of HYSAs (00:03:30 – 00:04:24)

Proper Use and Compliance Tips (00:06:24 – 00:09:05)

 

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