The $400 a Year Penalty of Keeping Your Cash in a Chase Savings Account

If you’re still stashing your savings in a big bank account like Chase, you’re basically giving up hundreds of dollars a year.

I’ve been writing about money for a while now, and one of the best moves I’ve ever made was ditching my traditional savings account for a high-yield savings account (HYSA). I made the switch a few months ago, and I can’t believe I waited so long.

Here’s exactly how much those traditional banks are shortchanging you, and how to flip the switch to start earning real interest.

Get hundreds more a year just for switching banks

Chase's standard savings account currently earns just 0.01% APY. That means if you keep $10,000 in your Chase account, you'll earn $1 a year in interest.

Meanwhile, some HYSAs are offering APYs of 4.00%. That means your $10,000 would earn $400 over the same time period.

That's $399 in extra interest just for switching accounts -- which takes about a half-hour of your time (or less).

Moving your money to an HYSA doesn't change how you can use it, either. You still have complete access to your funds at all times. Plus, like traditional savings accounts, most HYSAs are FDIC-insured up to $250,000, so your money will stay safe.

Want to grow your savings faster? See our full list of the best high-yield savings accounts today.

How to find the right high-yield savings account

Switching banks might sound like a hassle, but it's actually super easy -- and you can do it all online without leaving your home.

Here's a simple step-by-step guide:

1. Find a high-yield savings account with no monthly fees and a strong APY (think 4.00% or higher).
2. Open the account online -- this usually takes less than half an hour; I did it a few months ago in between NBA playoff games.
3. Transfer your savings to your new account.
4. Update any automatic deposits or withdrawals connected to your old account.
5. Close your old savings account.

If you regularly visit physical bank branches or handle lots of cash, then keeping your Chase account open might make sense. Just make sure you're not paying maintenance fees due to a low balance.

But for most people, fully converting to an online-only bank is the smart play. You can deposit checks through banks' mobile apps. And most online banks offer checking accounts and fee-free ATM networks, too, so getting cash isn't a problem.

Don't leave easy money on the table

There's no reason to keep earning $1 a year on a $10,000 balance. That money could be working much harder for you in a high-yield savings account.

Ready to make the switch? Check out all our favorite high-yield savings accounts today.