The Hidden Tax on Idle Cash The notion of keeping emergency funds in a high yield savings account (HYSA) is often touted as a low risk, high reward strategy.
However, the true cost of not taking advantage of this simple tactic is less well understood. A recent analysis revealed that parking $30,000 in a checking account earning 0.
05% APY generates only $150 over a decade, while the same balance in a 4% HYSA or money market fund compounds to $15,486. This disparity illustrates how the opportunity cost of idle cash can add up quickly.