The bank gets 5.4% from the federal government.[1] HYSA rates closely track the federal funds rate, because the banks are essentially passing on the fed funds rate to consumers (minus a cut for themselves). The bank can also get 5.3% from short term treasuries right now. So the answer is basically that the federal reserve is giving the return.
This is hilarious. You actually think the Fed is paying everyone's HYSA yields?
So, let me get this straight, you actually believe "Customers Bank", for example, which is currently offering 5.32%, is going through all the trouble of investing your money to get a 0.08% return from the same?
Or is it possible these HYSA institutions are investing your money into other, more risky investments, like foreign banks, for example?
Again, I have to wonder and ask, why has no intelligent person done the due dilligence to find out what their money is invested in for such a generous return, as they should for any other financial vehicle?
Literally not one person in this entire post can provide evidence of what their bank invests HYSA funds in. This is how financially illiterate we are.
1. https://www.federalreserve.gov/monetarypolicy/reserve-balanc...