How I Could Make $1,300 in the Next 2 Years Just by Switching Banks

For most of my adult life, I kept my money in a Wells Fargo savings account. It was safe, it was familiar -- and it was earning me next to nothing.

That's because Wells Fargo's standard savings account earns just 0.01% APY. That means every $10,000 you keep there gets you exactly $1 a year in interest.

Now, I keep my money in an account that earns 3.80% APY. Even if that rate drops a bit, I'll comfortably earn over $1,000 in interest over the next two years.

Here's how I did it, and how you can do the same.

Earn hundreds more a year, even if rates drop

Current interest rates for high-yield savings accounts (HYSAs) are super strong. Our best high-yield savings page currently features accounts with APYs from 3.50% to 4.30%.

Assuming an APY somewhere in the middle, at 3.80% APY every $10,000 in savings earns $380 in interest a year.

That number can change, though -- and it almost certainly will, with Fed rate cuts expected as soon as this month. To stay conservative, let's assume the following:

• Year 1 with an HYSA after rate drops: 3.50% APY
• Year 2: 3.20% APY

I keep around $20,000 in my HYSA. Here's how much I'd earn at these projected rates:

• Year 1 (3.50%): $20,000 × 3.50% = $700
• Year 2 (3.20%): $20,000 × 3.20% = $640
• Two-year total: $1,340 in interest from my HYSA

Even if my APY drops further -- or faster -- than expected, I'm looking at more than $1,000 in interest over the next two years.

Compare that with Wells Fargo, and there's no contest:

• Year 1 (0.01%): $20,000 × 0.01% = $2
• Year 2 (0.01%): $20,000 × 0.01% = $2
• Two-year total: $4 in interest from Wells Fargo

That's a difference of more than $1,300 over two years, just for moving my money.