Forget Bank of America. Your Emergency Cash Deserves a 4%+ APY
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Bank of America does a lot of things well. But paying interest is not one of them. As of this writing, BoA's standard savings account rate is a measly 0.01% APY -- basically couch-cushion money.
My team tracks interest rates daily, and the difference between a 0.01% account and a high-yield savings account (HYSA) paying 4.00%+ APY is… well, night and day.
And with the way the economy is shifting, this gap matters more than ever. Here's where your emergency cash actually belongs, and how much a 4.00%+ account can earn you in interest.
Savings vs. "high-yield" savings
Bank of America isn't doing anything wrong here. Most large banks still park their standard savings rate at 0.01% APY because they know convenience keeps people around. It's not malicious -- it's just the business model.
But this is where high-yield savings accounts flip the script.
A regular savings account keeps your money safe. A high-yield savings account keeps it safe and actually pays you for parking it.
That's the main advantage. With rates sitting near or above 4.00% APY right now, your emergency fund can finally pull its weight without you having to lock it away or jump through hoops.
A good HYSA gives you:
- Real interest (4.00%+ APY currently at top banks).
- FDIC insurance, same as a traditional savings account.
- Easy access through fast ACH transfers.
It's basically the same "savings account" you're used to -- just upgraded. And for something as important as your emergency fund, that upgrade pays off every single day your money sits there.
One platform that's turning heads right now with its high annual percentage yield (APY) is SoFi®. Read our full account review of SoFi Checking and Savings (Member FDIC) and see if it's a good fit for you.
SoFi Checking and Savings
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Earn up to 4.00% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.30% APY as of 12/23/25) for up to 6 months. Open a new SoFi Checking and Savings account and pay the $10 SoFi Plus subscription every 30 days OR receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
- 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.
How much you can earn with a 4.00% APY
Here's the part most people overlook: small percentages turn into big dollars when your cash is sitting in the right account.
Here's what your cash would earn in interest in one year at 4.00% APY at different balances:
| Deposit | Interest Earned |
|---|---|
| $5,000 | $200 |
| $10,000 | $400 |
| $20,000 | $800 |
| $50,000 | $2,000 |
Now compare that to Bank of America's 0.01% APY for basic savings accounts. A $10,000 balance would earn just one dollar in a year.
Moving your money to an HYSA is essentially paying yourself hundreds more per year for doing absolutely nothing. That's the kind of math I like!
What to watch for as rates change
The Federal Reserve has already started cutting rates, and that usually means APYs on savings accounts will drift lower, too.
But even if rates fall a full percentage point (or two!) from current levels, high-yield accounts will still pay far more than a basic 0.01% savings account.
Since HYSA rates are variable and can change anytime, it's smart to pick a bank that fits your comfort level, with easy access, simple transfers, and no annoying hoops.
Chasing the absolute highest APY each month isn't worth it if the account doesn't feel good to use.
For what it's worth, I recently switched my own savings to grab a better rate. The whole thing took about 15 minutes to open the account and schedule the transfer. A tiny effort for a much bigger payoff.
A better setup for the year ahead
Your emergency savings is meant to protect you -- not gather dust at 0.01% APY.
Even a small balance can earn hundreds more per year just by switching to a better account.
If you've been meaning to upgrade your savings but keep putting it off, consider this your friendly nudge.
See all our top-rated savings accounts and pick the right home for your cash.
Our Research Expert
Joel O’Leary is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, mortgages, and other personal finance topics. Joel has been writing about personal finance since 2018, previously leading editorial content for the How To Money podcast and serving as a resident writer at Budgets Are Sexy. He bought his first rental property at age 18, funding the down payment with savings from his high school job at McDonald’s -- a testament to his lifelong passion for smart money decisions. His work aims to make personal finance accessible and actionable for everyday readers. When he’s not writing, Joel enjoys surfing and spending time with his family.