I currently have a substantial amount of money parked in a Wealthfront HYSA, the majority of which is earmarked for a down payment on a second home in the near (1-2 year) future. After two reductions in APY, from 4.5% last year now to 3.5%, I am considering transferring to a new bank, and came across Raisin’s Western Alliance HYSA, which offers a 4.2% APY and cash bonus.
Where I am confused is the disclaimer on Raisin’s end as non-FDIC member; although Western Alliance is an FDIC member, I wonder if the account is ultimately FDIC insured or not? What would happen if the proverbial shit hits the fan?
But just generally speaking, is there an HYSA people are liking right now with a >4% APY?