3 Reasons Why Your Savings Account Isn't Growing as Expected
KEY POINTS
- Keeping extra cash in a savings account is a smart financial strategy.
- You may be making mistakes that hinder your account growth.
- Ignoring APYs, not making frequent contributions, and spending your savings without replenishing them are three reasons you may not see the growth you expect.
Saving more money is an excellent financial goal to tackle. You never know when you could benefit from having extra cash in the bank. An unexpected car repair bill or job loss are two life surprises that can negatively impact your finances if you're unprepared. Are you saving money but want to see more account growth? I'll share a few reasons your savings account may not be growing as expected. You can make some changes to improve your results.
1. You're not making frequent contributions to your account
You can boost your savings account balance through interest as your money sits in the bank. But if you're not adding money to your account, growth can be slow. It's wise to contribute to your savings account regularly. You can reach your savings goals faster.
A great way to ensure you continue saving is to automate your savings. You can set up automatic transfers through your online account. Once you do this, money will be transferred from your checking account to your savings account on a set schedule of your choosing.
I've chosen to set up bi-weekly transfers, but you might consider less frequent or more frequent transfers depending on your needs. By doing this, you can ensure you stay on top of your savings goal. This is a beneficial move if you struggle to remember to save.
Our Picks for the Best High-Yield Savings Accounts of 2025
| Product | APY | Min. to Earn | |
American Express® High Yield Savings
Member FDIC.
APY
3.80%
Rate info
3.80% annual percentage yield as of January 21, 2025. Terms apply.
Min. to earn
$0
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
3.80%
Rate info
3.80% annual percentage yield as of January 21, 2025. Terms apply.
|
$0
|
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
Barclays Tiered Savings
Member FDIC.
APY
up to 4.50%
Rate info
Balances less than $250,000 earn 4.25%, and balances greater than $250,000 earn 4.50% APY.
Min. to earn
$0
Open Account for Barclays Tiered Savings
On Barclays' Secure Website. |
up to 4.50%
Rate info
Balances less than $250,000 earn 4.25%, and balances greater than $250,000 earn 4.50% APY.
|
$0
|
Open Account for Barclays Tiered Savings
On Barclays' Secure Website. |
Western Alliance Bank High-Yield Savings Premier
Member FDIC.
APY
4.35%
Rate info
The annual percentage yield (APY) is accurate as of Jan. 16, 2025, and subject to change at the Bank's discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
Min. to earn
$500 to open, $0.01 for max APY
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
4.35%
Rate info
The annual percentage yield (APY) is accurate as of Jan. 16, 2025, and subject to change at the Bank's discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
|
$500 to open, $0.01 for max APY
|
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
With automation, there is no more forgetting to contribute money to your savings fund. This method can save you time and make saving easier.
2. You're spending your savings without replenishing the funds
Another reason you may be disappointed in your account growth is because you're spending the money you saved. You should use the money in your savings account when you need it. That's what it's there for -- but it's essential to replenish the funds you take out.
Otherwise, your balance will decrease when you take money out of it. The best strategy is to replenish any savings you spend as quickly as possible. Doing this ensures you remember to rebuild your savings fund and allows you to have money available if you need it later.
3. Your bank account has a low APY
If your savings account growth is sluggish, do yourself a favor and check the annual percentage yield (APY). This is the rate of return you can expect by keeping your cash in the bank for one year. A lower APY will result in less interest and slower growth.
If you're using a traditional savings account, you're likely earning interest at a low rate. Consider keeping your savings in a high-yield savings account to earn more interest. Right now, many banks are offering attractive rates for these accounts. Review our list of the best high-yield savings accounts to compare rates and choose an ideal account.
Set yourself up for success
It's fantastic that you're prioritizing your saving goals. Keep up the great work! But make sure you're maximizing your growth. Avoiding the above mistakes could help you increase your savings account balance. For more tips, check out our free personal finance resources.
Our Research Expert
Natasha is a freelance writer who specializes in personal finance, credit card, credit card rewards, and travel hacking content.
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