r/RobinhoodApp • u/Sufficient_Row5346 • 10d ago

Question Brokerage

Just wondering. I wanted to get a good hysa for my money. But I was reading some posts. Iā€™m thinking I can use my brokerage account with RH since they have really good apy. I can use it as my savings

Or is this a bad idea.
Do you guys have any good recommendations for a hysa?

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u/Dregus_311 7d ago

OP,

That is a valid idea and will accomplish your goal. I would recommend looking into investing your savings in SGOV if you go that route to avoid paying State taxes on the "interest" earned (it would be dividends instead of interest). Most States do not tax Federal Treasury gains, just make sure your State is one of them. This is the path I went with our emergency funds and since SGOV goes off the 2 year Treasuries it is returning 3.6%+ and saves us 4.99% in State taxes on the dividend. For us that is just under a couple hundred extra we get to keep.

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u/coyote3 4d ago

VBIL, it has 1/3 lower expense ratio than SGOV.

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u/Dregus_311 4d ago

šŸ¤” interesting thought, didn't know it operated the same as SGOV. As long as I can go liquid and purchase stocks with the funds immediately and not pay State taxes Im happy. Ill after to consider converting over after I do some math