The Simple Move That Earns You 10x More Than a Big-Bank Savings Account
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Years ago, I logged into an old savings account I hadn't touched in years. I couldn't believe the amount of interest it earned.
It was something like $0.14.
That's when it hit me: Most big banks still pay almost nothing on savings accounts. And the easiest way to earn drastically more is to move your money into a high-yield savings account.
This swap generally takes minutes and can increase your earnings by more than 10x.
Why big-bank savings rates are so low
The national average savings rate still sits close to 0% at the largest banks. The "big banks" -- think Bank of America, Wells Fargo, Chase -- pay around 0.01%. Some pay slightly more, but not enough to matter in any real way.
Big banks get away with it because they know most people won't bother switching. Convenience keeps your money parked where it earns almost nothing.
But you're not locked in. And rates outside the big banks are still strong.
How high-yield savings accounts compare
A competitive high-yield savings account today pays around 4.00% APY. That's roughly 400 times what many big banks pay.
Here's what that difference looks like on $10,000:
- Big bank at 0.01%: about $1 in interest a year
- HYSA at 4.00%: about $400 a year
You're not spending more. You're not taking on extra risk. You're just moving your money to a bank that rewards you for using it.
These accounts are FDIC-insured, easy to open online, and don't require minimum balances at many institutions. You can compare the best ones here.
It's still safe and still liquid
A high-yield savings account keeps your money just as accessible as any traditional savings account. You can transfer funds to checking, move money digitally, or use the balance for an emergency fund.
There's no penalty for taking cash out. And unlike CDs, you're not locking your money away.
If you want to keep your emergency fund safe and flexible, this is the best of both worlds.
How to make the switch in minutes
If you've never opened a high-yield savings account before, the process is simple:
- Choose a reputable online bank with a competitive rate
- Open the account online
- Link your current bank account
- Transfer your savings over
It takes less time than ordering dinner.
And yes, you can keep your checking at your current bank. You're not moving your entire financial life. You're just parking your savings somewhere that pays real interest.
The key is not waiting
Rates have come down from last year's highs, but they're still strong. And if the Fed continues to make cuts in 2025 and 2026, savings rates could keep sliding.
If your money is sitting at a big bank earning pennies, there's no point waiting. You're losing ground every day.
Switching is simple. The payoff is real. And it's one of the quickest financial wins most people never take advantage of.
Our Research Expert
Jake FitzGerald is a full-time Editorial Strategist and Personal Finance Writer at Motley Fool Money, leading content production and distribution while also writing about credit cards, bank accounts, and other financial products. He has more than a decade of experience editing and shaping financial content to give readers clear, trustworthy money advice. His work focuses on delivering practical insights that empower people to make smarter financial decisions. Off the clock, he’s a fan of college football tailgates and still loyal to his favorite putter -- despite what his short game suggests.