Here's What Happens When You Move All Your Savings to an HYSA
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Every year, one of my top recommendations for people looking to up their money game is to open a new savings account.
But not just any old savings account at any ol' bank. I'm talking about a high-yield savings account (HYSA), ideally at a no-fee online bank that actually helps you save more.
Here's what happens when you make the switch, and where to find a good account.
1. You start earning hundreds more in interest
If you have $10,000 parked in a simple savings or regular checking account at a big bank, you're likely earning 0.01% APY. And your yearly interest is… $1. That's not a typo.
Now take that same $10K and move it to a high-yield savings account earning 4.00% APY, you're now looking at $400 per year in interest!
That's why it's called a "high-yield" savings account. They pay way higher interest rates, which means your money earns more interest.
Personally, I keep my savings in a LendingClub LevelUp Savings account because it pays one of the highest rates I've found. I've got monthly transfers set up, so my account just grows on auto-pilot throughout the year.
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- Competitive APY
- No fees
- Easy ATM access
- Unlimited number of external transfers (up to daily transaction limits)
- Requires you to make monthly deposits to earn the best APY
- ACH outbound transfers limited to $10,000 per day for some accounts
- No branch access; online only
The LendingClub LevelUp Savings account has a lot to offer. At the top of the list is its high APY, though you must deposit monthly to earn the best rate. Next is zero account fees, a strong and straightforward perk. Finally, you get a free ATM card, which you can use to withdraw from thousands of ATMs nationwide. Interested? You can open an account with $0.
2. You'll avoid junk fees and monthly charges
Probably my biggest pet peeve with traditional big banks is they like to nickel-and-dime you for silly little things.
And that's another reason I love online banks. Most of the best HYSAs come with no monthly maintenance fees, no minimum balance requirements, and no hidden gotchas.
Some people overlook fees because it's "only" $10 or $15 a month. But to me, that's an extra $120-$180 a year I get to keep in my savings and not give to the bank.
3. You'll probably start saving more
Here's a psychological trick most people don't expect: By keeping your savings in a completely separate account (better yet, at a separate bank), it changes the way you think about your money.
Even though you can still access your money anytime, you're way less likely to "accidentally" dip into your savings. In a separate account it feels just that tiny bit more out of reach.
And once you see your balance grow faster (from both interest and more discipline), it becomes a little addicting in a good way. You'll naturally want to save more.
Plus, just like the big banks, online savings accounts are usually FDIC insured up to $250,000. So your money's protected while it grows.
Give your savings a raise in 2026
Most high-yield savings accounts can be opened online in under 10 minutes. And during the account set-up process, you can "link" it to your current checking account to make transfers back and forth quicker.
It's one of the lowest hanging fruit moves for people to save more, earn more interest, and avoid fees.
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.