‘If you had a 1-year ‘deadline’, would you keep the money in a HYSA or invest it?’: My student loan payments are about to resume in a year. How should I manage my savings before then?

Hi Money Minder,

So, my student loan ($100k) payments and interest growth have been put on hold, but in exactly one year (August 2025) they’re starting up again. I really want to save as much as I can from my job before that happens. If you were in my shoes with a time limit of one year, would you stash your earnings in a high-yield savings account (HYSA) or invest as you go? And if you would invest, what’s the game plan?

Thanks a bunch!

Savvy Saver

Response from THE MONEY MINDER:

Hello There,

Hello,

It’s great that you are thinking ahead and planning to save as much money as possible before your student loan payments resume. Given your one-year deadline, a realistic and practical approach would be to consider a combination of options.

Firstly, I would recommend keeping a portion of your savings in a High-Yield Savings Account (HYSA). This will ensure that you have easy access to your funds and that they are kept in a stable and secure account, earning a higher interest rate than a traditional savings account.

Additionally, I would suggest considering investing a portion of your earnings in a diversified investment portfolio, such as low-cost index funds or ETFs. Investing can potentially provide higher returns over the long term compared to a savings account. However, it’s essential to be mindful of the risks involved and consider your risk tolerance and financial goals before making any investment decisions.

By maintaining a balance between saving in a HYSA for short-term goals and investing for long-term growth, you can make the most of the money you earn before your student loan payments resume. Remember to regularly review and adjust your financial strategy based on your progress and changing circumstances.

All the best from THE MONEY MINDER.