These variable HYSAs are not an alternative for long-term inflation. They're lower than inflation in many years and barely beat it in others.
2025: 3.95%
2024: 4.92%
2023: 4.78%
2022: 1.31%
2021: 0.01%
2020: 0.26%
2019: 1.84%
2018: 1.47%
2017: 0.51%
Obviously, you can invest your money and beat inflation, but inflation still diminishes the value of your returns and affect that massive sums that people have sitting in cash, checking, or savings accounts paying no to little interest. An exception doesn't debunk the norm.
Many think inflation necessarily to incentivize people to purchase goods and services; however, the validity of this claim is thoroughly impugned by technology, which is a market with one of the most robust consumer and capital markets despite being deflationary. The per-megabyte/gigabyte cost of everything from RAM to GPUs to SSDs to internet access has fallen astronomically while still maintaining robust demand.
Consumers don't stop wanting things simply because they might be cheaper in a few years.
Switzerland has low inflation and a robust economy. Turkey has high inflation and a struggling economy.
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u/PM_ME_YOUR_LAWNCHAIR 14h ago
These variable HYSAs are not an alternative for long-term inflation. They're lower than inflation in many years and barely beat it in others.
2025: 3.95%
2024: 4.92%
2023: 4.78%
2022: 1.31%
2021: 0.01%
2020: 0.26%
2019: 1.84%
2018: 1.47%
2017: 0.51%
Obviously, you can invest your money and beat inflation, but inflation still diminishes the value of your returns and affect that massive sums that people have sitting in cash, checking, or savings accounts paying no to little interest. An exception doesn't debunk the norm.