Big Banks Are Still Paying 0.01%. Here's Where to Actually Earn Interest on Your Savings
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Did you know 82% of Americans don't use a high-yield savings account (HYSA)? For years, I was part of that group too. I left my cash sitting in a big bank account that earned just 0.01% APY -- basically pennies each year.
But once I learned what an HYSA was and started using one for savings, everything changed. Over the past couple of years, I've earned more than $2,000 in interest just by keeping my cash in a better account. That's real money I didn't have to work for.
Here's everything you need to know about high-yield savings accounts -- and how much you can earn by opening one.
What is an HYSA?
Think of a high-yield savings account just like a regular savings account but with turbocharged interest.
Right now, big banks like Chase, Bank of America, and Wells Fargo pay 0.01% APY on basic savings accounts. That's nothing compared to online banks that are offering around 4.00% APY today for high-yield savings.
The difference may not sound huge, but it adds up quickly. Instead of making pocket change on your savings, you can make hundreds -- or even thousands -- of dollars over time.
How much interest can you earn?
Here's how powerful a high-yield savings account can be for your money.
Depending on your account balance, this is how much interest you can earn over one year in a top HYSA paying 4.00% APY vs. savings at a big bank paying 0.01% APY:
| Balance | 0.01% APY (Big Bank) | 4.00% APY (HYSA) |
|---|---|---|
| $1,000 | $0.10 | $40 |
| $5,000 | $0.50 | $200 |
| $10,000 | $1.00 | $400 |
| $25,000 | $2.50 | $1,000 |
That's the difference between buying a cup of coffee vs. covering a month of groceries.
The top-paying HYSAs are usually offered by online banks or fintech companies. Since they don't have physical branches to operate and run a lean business model, they can afford to pay better rates than most brick-and-mortar banks.
A really popular option right now is the SoFi Checking and Savings (Member FDIC) account. This combo checking and savings account currently has a limited-time offer with an annual percentage yield (APY) up to 4.50% on savings, making it one of the top rates available.
Check out our full SoFi Checking and Savings (Member FDIC) review to see if it's a good fit for you.
SoFi Checking and Savings
On SoFi's Secure Website.
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- Competitive APY on both Savings and Checking
- No monthly account fee
- Welcome bonus up to $300 (direct deposit required)
- ATM access
- Unlimited number of external transfers (up to daily transaction limits)
- FDIC insured (up to $3M with opt-in to SoFi Insured Deposit Program)
- Early access to direct deposits
- Tools to help you track savings goals
- Combo account only; no stand-alone savings or checking
- Maximum Savings APY requires direct deposit
- No branch access; online only
- Overdraft protection requires monthly direct deposit minimum
For those who plan to set up direct deposit with their new account, we think SoFi Checking and Savings (Member FDIC) is hard to beat. Not only does this savings account offer a strong APY, but the linked checking account earns an above-average rate, too -- which is a rare perk. Plus, new customers earn a bonus of up to $300 with eligible direct deposit. Frankly, it's the kind of combo that could make it worthwhile to switch banking relationships.
You can earn the maximum APY either by making direct deposits into checking or savings, or by depositing $5,000 or more every 30 days. Learn more.
Are online banks legit?
Before opening any new bank account, it's important to fully vet the bank and make sure your money is safe.
The good news is, most online banks have the same security measures and compliance standards as big banks.
Here's what you can expect from most online banks:
- FDIC insurance: Most online banks are FDIC-insured, meaning your deposit accounts are protected up to $250,000 per depositor, per bank, just like at a brick-and-mortar bank.
- Easy transfers: If you have both a checking and an HYSA at the same bank, transfers are usually instant. Moving money between different banks via ACH can usually take one to two business days.
- Low or no fees: Many of the best HYSAs have no monthly maintenance fees and no minimum balance requirements.
- Awesome mobile apps: Since online banks are fully digital, they have really cool tech. They also integrate well with mobile wallets, Zelle, and make mobile banking really easy.
Really the main difference is that you won't have a local branch to visit. But for savings accounts (where you're not doing daily transactions) that's usually not a problem.
Whenever I need to access a large chunk of savings, I usually plan ahead a few days and do a money transfer. It's super easy and takes just a few seconds to request in the bank's mobile app.
Don't settle for 0.01%
Leaving your savings in a big bank account is like trying to drive a car that's in neutral. Your money isn't going anywhere.
With an HYSA, you can earn real interest. And there's no additional risk or ongoing work.
I waited too long to make the switch, but once I did, the extra interest started piling up fast. Don't let your hard-earned money sit idle -- open an account today.
Compare all the top HYSAs here and start earning more on your money.
Our Research Expert
Joel is a full-time Personal Finance Writer at Motley Fool Money, known for his clear, approachable voice on topics like credit cards, savings hacks, and side hustles. He’s been writing about money since 2018 and previously managed editorial content for the How To Money podcast.