Have $10K in Checking? That Might Be a Problem in May 2025

Most checking accounts pay next to nothing. Like, 0.07% APY kind of nothing. If you've got $10,000 just chilling in one, that's earning you...about $7 a year.

Meanwhile, top high-yield savings accounts (HYSAs) are paying around 4.00% APY as of May 2025. That same $10,000 could be earning you $400 or more -- passively, with no extra effort or risk.

I'll be honest, I used to only have a checking account, too. But then I learned about HYSAs and made a switch. Last year alone I earned $798 on my emergency fund!

Checking accounts aren't built for savings

Checking accounts are designed for spending, not growing your money. They're made for quick access and everyday banking needs. They pay a tiny APY (or no APY at all).

Savings accounts are different -- specifically "high-yield" savings accounts. They're perfect for the cash you're saving up for emergencies and short-term goals, and they pay a much bigger APY.

The average interest rate on checking accounts is 0.07%. The top HYSA rate from our partners in May 2025 is 4.40%.

To put this in real numbers, with $10,000…

• In a 0.07% APY checking account: you'd earn $7 per year.
• In a 4.40% APY HYSA: you'd earn $440 per year.

That's a $433 difference. Enough to pay for an Amazon Prime membership plus a full year of Netflix Standard (the ad-free plan!).

The psychological power of separate savings

Beyond the higher APY, I've noticed a couple of other benefits to having a separate bank account for my savings.

1. I naturally save more. Money that goes in doesn't come out. My HYSA is like a one-way street, so the balance just keeps going up.
2. I splurge way less. Since my checking account has a lower daily balance, it's much harder for me to feel "spendy."
3. I feel more organized. Having separate buckets for spending and savings (and investing!) is simpler than lumping all my dollars together.

So yeah, it's not just about the interest. My HYSA is part of my grown-up money game plan. #Adulting.

Link your accounts for faster transfers

When you open a new HYSA, it's a good idea to link it to your existing checking account during setup. That way, moving money back and forth can be done with a few taps on your phone.

Transfers between different accounts can take one to three days, but for me it usually happens the very next morning.

Time to put your money to work

If you've got $10,000 sitting in checking, ask yourself, Is it really doing anything for you?

A high-yield savings account gives your cash a job -- earning 4.00% or more with zero effort or risk. Switch your savings over today. You won't regret it.