Here's What Happens if You Move All the Money From Your Checking Account to Savings
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As I write this, my checking account has exactly $100 in it -- and thankfully, I'm not on the verge of bankruptcy. I actually have a good reason for it.
Instead of a checking account, I keep almost all my cash in the savings portion of my SoFi Checking and Savings (Member FDIC) account. That's because it's got a much higher APY, which means I rack up hundreds of dollars a year in interest on my $20,000 in savings.
Here's how it works, and why I recommend you do the same today.
Earn hundreds more a year with one switch
First, you'll want to make sure you've got a savings account that's actually earning you interest. Right now, the national average savings APY is just 0.39%, per the Federal Reserve. That means every $10,000 in savings is earning a measly $39 on average. Not great.
Here's how much more you can make with a top high-yield savings account (HYSA):
| Balance | Top HYSAs (3.30%+) | National Average (0.39%) |
|---|---|---|
| $20,000 | $660 | $78 |
| $10,000 | $330 | $39 |
| $5,000 | $165 | $19.50 |
| $2,500 | $82.50 | $9.75 |
Looking to make a move today? I recommend my bank of choice, SoFi®. It comes with:
- An annual percentage yield (APY) of up to 4.00% on savings for six months with direct deposit
- Up to $50 in no-fee overdraft coverage with direct deposit
- Access to paychecks up to two days early with direct deposit
- No account fees or minimum deposits
On SoFi's Secure Website.
Member FDIC.
SoFi Checking and Savings
On SoFi's Secure Website.
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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.
To earn even more, I keep almost all my cash in savings
I keep basically all my loose cash in my SoFi® savings account -- not my checking account. That's because the savings APY is much higher, so every dollar I keep in savings is earning me much more than it would otherwise.
I've even set up my automatic transactions like bills and credit card payments to come directly out of my savings. My checking account is almost a formality at this point -- I just keep $100 in there in case of emergencies. And of course, if I ever need more, I can instantly transfer money from my savings.
Here's how my strategy breaks down.
What I don't use my HYSA for:
- Long-term investing, like index funds and retirement savings
- My small checking cushion: $100 to cover small emergencies, with the option to instantly transfer more
What I do use my HYSA for -- everything else, including:
- Emergency fund: Three to six months' worth of expenses
- Short-term savings: Money for vacations and other large purchases
- All other in-between cash: Basically, any money I'm not planning on investing
With this setup, I'm earning a competitive APY on almost all of my loose cash -- and I don't have to lift a finger to get it. That's the power of a good high-yield savings account.
Want to earn hundreds more a year on your cash now? Compare and contrast our favorite high-yield savings accounts today.
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.