Get 4.50% APY: Beat Inflation in 30 Minutes With One Simple Switch
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Anyone with money in the bank, listen up: The 12-month inflation rate hit 3.0% in September. That means any money you have sitting in low-APY savings accounts has quietly lost value over the last year.
Fortunately, there's a better way to save: A high-yield savings account (HYSA), the best of which are offering up to 4.50% APY at the moment. That means every $10,000 you keep in savings could earn you $450 a year in interest -- all for taking a half hour or less to switch banks.
Here's what to know.
Traditional banks vs. HYSAs: An easy decision
Right now, the average savings APY is just 0.40%. That means with a top HYSA, you could be earning 10 times more in interest just for one simple switch.
Here's how much you'd make with different balance amounts:
| Balance | Top HYSAs (4.50%) | National Average (0.40%) |
|---|---|---|
| $20,000 | $900 | $80 |
| $10,000 | $450 | $40 |
| $5,000 | $225 | $20 |
When you frame it like that, it's an easy choice. And even if interest rates continue to fall as expected, the difference will still be massive.
Just like traditional bank accounts, HYSAs are FDIC-insured up to $250,000, so your money is totally safe. Top HYSAs also offer perks like:
- No account fees or minimum deposit requirements
- No-fee overdraft coverage
- Early access to paychecks
Ready to earn hundreds more on your savings? Check out our full list of the best high-yield savings accounts today.
What should you keep in your HYSA?
High-yield savings accounts are perfect for earning interest on any money you want to keep completely accessible. Here's what I keep in my HYSA:
- Emergency fund: Three to six months' worth of expenses.
- Short-term savings: Money for things like vacations and large purchases
- Extra cash: Any additional money that I don't need in my checking account
It's not great for long-term investments, or money you want for everyday transactions, but for almost everything else -- what I call your "in-between cash" -- an HYSA is the perfect place.
Open an HYSA in just a few minutes
Moving your cash to an HYSA is, in my experience, a piece of cake. It took me less than half an hour to open mine -- and I did it all from my laptop without leaving home.
Here's how to get started:
- Compare top options. Look for HYSAs with a high APY and no fees.
- Apply online. Applications are usually quick and easy.
- Transfer your funds to your new account.
- Move direct deposits and other automatic transfers to your new account, too.
Once you're all set, you might decide to close your old account if it no longer serves a purpose. Then your HYSA journey is complete -- it's that simple.
Want to earn 4.50% APY on your savings today? See our full list of the best high-yield savings accounts available now.
Our Research Expert
Ryan Wilcox is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, auto insurance, and other personal finance topics. Ryan has been writing about credit cards and savings since 2022. Before joining Motley Fool Money, he was a full-time writer at The Points Guy, where he focused on maximizing credit card rewards and travel strategies. He holds a bachelor’s degree in English and American History from the University of North Carolina at Chapel Hill, where he also spent four years reporting for The Daily Tar Heel. With a background in both journalism and consumer finance, he brings a clear and thoughtful voice to money topics. Outside of work, Ryan is likely reading, writing, or updating his Letterboxd account.