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Glossary entry · What you own
High-yield savings
Definition
Often called HYSA. A regular savings account that simply pays a much better interest rate than the big banks — typically offered by online-only banks that have lower overhead. Same insurance, same liquidity, often 10-50× the rate of a traditional savings account.
Example
In a 5% interest rate environment, a HYSA might pay 4.5% while a typical bank pays 0.05%.
Related
What you own
Stock
A share of ownership in a company. You profit if the company grows; you lose if it falters.
Read →Bond
A loan you make to a government or company. They pay you interest, then return your money.
Read →ETF
A basket of many investments — often hundreds — bought in a single transaction.
Read →Index
A representative basket of a market — like the S&P 500 or the IBEX 35.
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