Had $25K in a Bank of America Savings Account for 5 Years? You Just Lost $5,000 in Interest
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Right now, if you've got money sitting in a standard Bank of America savings account, it's earning just 0.01% APY.
On a $25,000 balance, that's $2.50 per year. Not even enough to buy a tall 1-pump vanilla latte at Starbucks. (I know -- mine this morning cost over $7! Rant article coming later.)
But meanwhile, several top FDIC-insured online banks are paying 4.00% APY or more right now. At that rate, $25,000 earns $1,000 in interest every year -- enough to cover a weekend getaway, a month of groceries, or about 142 tall vanilla lattes.
I track APYs and review banks for a living. Here's how to pick a better account and start earning real interest.
How much interest are you really missing?
Here's what five years of savings growth looks like at BofA's 0.01% APY compared to a competitive high-yield savings account (HYSA) paying 4.00% APY with a $25,000 balance:
| Account | Interest Earned |
|---|---|
| BofA Savings | $12.50 |
| Online HYSA | $5,416.00 |
That's more than a $5,400 difference just for parking your money in the right place.
I keep about $20,000 to $25,000 in a high-yield savings account for emergencies and short-term goals. I dip into it sometimes when big expenses pop up, but for the most part it sits idle all year.
Last year, I earned $798 in interest on that account. And this year I'm on track to earn over $1,000.
I still keep a checking account open at my big bank (Chase). But try to keep the balance as low as possible because that account pays peanuts.
There's zero downside to moving idle cash into a better-paying account. Your money stays safe, liquid, and FDIC-insured -- just with way more earning power.
Actually a great option right now is Western Alliance Bank. Its Western Alliance Bank High-Yield Savings Premier account is offering a 4.30% APY with a minimum opening deposit of just $500. Check it out and click to open an account below.
Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website.
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- Competitive APY
- No monthly account fee
- Unlimited number of external transfers (up to daily transaction limits)
- FDIC insured
- Can open an individual or joint account
- Deposits and withdrawals can only be conducted via ACH transfer to/from an external bank account (limit to one linked account)
- No ATM access
- No wire transfers (inbound and outbound)
- No branch access; online only
Western Alliance Bank offers a higher APY than most high-yield savings accounts. Plus, it's FDIC insured; therefore, deposits are perfectly safe up to applicable legal limits. The main drawback is that accounts don't have many features. For example, you can only deposit and withdraw funds via ACH transfer to/from an external bank account. This account is solid for those who want a sky-high APY, but don't mind a bare-bones banking experience.
The annual percentage yield (APY) is accurate as of July 29, 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.
Are online banks safe?
Long story short, yes.
This is one of the first questions I get when I tell people to move their savings. And honestly, I get it. I had the same concern years ago before I opened my first high-yield savings account.
Back then, I was used to walking into a branch if I needed anything. The idea of banking through an app or website felt… weird.
But once I did a little research, I realized most online banks are under the same regulations as big name banks. They are just as safe.
Look for the words "FDIC insured." That means your deposits (up to $250,000 per account holder, per bank) are backed by the U.S. government. It's the same protection you'd get with Bank of America, Chase, or Wells Fargo.
Personally, I've used online banks for years now. I've never had a single issue. It usually takes one to two days to move money with ACH transfers, customer support has been great, and I sleep just fine knowing my money's safe and earning real interest.
How to choose a good high-yield savings account
Moving your money doesn't mean you need to ditch your current bank entirely. I still use my old checking account for bills and transfers.
But when it comes to growing my savings, I keep that cash where it earns real interest.
Here's what to look for in a better account:
- Competitive APY -- Anything in the 3.50%-4.00% range (or higher!) is really good right now
- Low or no fees -- Avoid accounts with monthly maintenance fees or minimum balance requirements
- FDIC insurance -- Make sure your money is protected and safe
- Easy transfers -- You'll want the ability to move money quickly when needed
- Reputation and reviews -- Trust matters, especially with online banks
Setting up an account usually takes about 15 minutes. Then once you link your checking account it takes a couple days to complete the ACH transfer.
Once your money is in the new account, you'll start earning interest from that day forward!
There aren't many guaranteed wins in personal finance, but this is one of them.
Don't let loyalty to a big bank cost you real wealth.
Compare the best high-yield savings accounts here and start earning more today.
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.