The High-Yield Savings Trend Is Exploding -- Don't Miss Out
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If you're still earning 0.01% interest in an old checking or savings account, you're losing out on serious money.
Some of today's top high-yield savings accounts (HYSAs) are paying around 4.00% APY right now. So a $10,000 balance can earn around $400 a year in interest -- 400x more than what some big banks are paying.
The high-yield savings trend is booming, and millions of savers (including myself) are finally ditching low-interest accounts and earning decent interest.
If you're not in on it yet, here's why now's the time to act.
High-yield savings accounts pay real money
The biggest advantage of an HYSA is the interest rate.
Here's a quick look at the interest you could earn in a year with a 4.00% APY, depending on your balance:
| Balance | Interest Earned |
|---|---|
| $5,000 | $200 |
| $10,000 | $400 |
| $20,000 | $800 |
| $50,000 | $2,000 |
Personally, I earned $798 in interest last year. And I'm on track to earn over $1,000 this year because of my HYSA.
This is why I tell friends: don't think of bank interest as "just a few bucks." It can cover flights, holiday gifts, or even part of your rent!
One of my favorite options right now is Barclays Tiered Savings, which pays 3.90% APY with no monthly fees or minimum balance requirements. It's an easy set-up for parking your emergency fund or any short-term savings. Open a Barclays Tiered Savings account and start earning 3.90% APY today.
FDIC-insured up to $250,000
I get it. Moving a large chunk of cash to a new bank can feel a little nerve-wracking. Some people worry that online banks are "less safe" than big-name banks.
But that's not true at all. Most HYSAs are FDIC-insured up to $250,000 per depositor, per bank, which is the same protection any giant bank offers.
HYSAs are also fully liquid. That means you can move money in and out anytime without penalties. If you need your emergency fund tomorrow, you can transfer it in just a day or two.
Even better, most online banks charge no monthly fees and require no (or very low) minimum balances. It's the best of both worlds: high interest and zero hassle.
Rates are still high -- but they will likely drop soon
A couple years ago, I actually scored a 5.00% APY. But that was when inflation was running red hot and the Federal Reserve elevated its benchmark rate.
Things have cooled down since then, and rates continue to drop.
As of right now in mid-2025, most economists expect rate cuts starting this coming September. When that happens, banks will likely start lowering HYSA rates.
Long story short -- high rates won't last forever. So don't wait to jump on the high-yield savings trend. Put your money to work sooner and experience these current 4.00% APYs while we have them.
Start earning more today
Last month I helped a friend open her first HYSA, and the entire process took about 20 minutes.
She transferred $15,000 from her old checking account the very next day and has been earning daily interest ever since. It's a super easy process these days because modern apps make moving your money painless.
By the way, you don't need to completely ditch your old bank. I never did. I still use a big bank to get my paychecks deposited and do my regular checking activities. It's just my savings that I keep in an HYSA.
There's really not much to lose -- and a lot to gain. You'll still have easy access to your cash, but now it will actually be working for you instead of just sitting idle.
Find the right high-yield savings account and start earning 4.00%+ APY today. You won't regret it.
Our Research Expert
Joel is a full-time Personal Finance Writer at Motley Fool Money, known for his clear, approachable voice on topics like credit cards, savings hacks, and side hustles. He’s been writing about money since 2018 and previously managed editorial content for the How To Money podcast.
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